LONDON (Alliance News) - Beverage can maker Rexam PLC Friday said its overall results for 2014 so far have been in line with expectations, despite mixed trading across its regions.
In an interim management statement for the period January 1 to date, the company said volumes of its standard and speciality cans were "quiet" at start to the year in Western Europe, but it saw volume growth in Russia.
Rexam said in North America, its speciality cans business grew in the first quarter, while its performance in standard cans was in line with the market.
It said the Africa, Middle East and Asia region saw continued strong growth in India offset by soft trading in Turkey and Egypt.
FTSE 100-listed Rexam said volumes in South America grew "strongly" for both standard and speciality cans dues to good weather, the timing of carnival and the forthcoming FIFA World Cup this summer.
The company said the sale of its healthcare business is proceeding according to plan. As it had previously announced, following the completion of the sale of the Pharmaceutical Devices and Prescription Packaging divisions, GBP450 million of the proceeds will be returned to shareholders.
Despite a positive start to the year, the firm said it remained cautious and said the busy summer season traditionally influences its full-year results.
"In 2014, we are facing foreign exchange translation headwinds and metal premiums are at an all time high, but we continue to expect to make further progress on a constant currency basis," Chief Executive Graham Chipchase said in a statement.
"The business is performing well operationally, and we remain committed to managing what we can control and focusing on cash, cost and return on capital employed as we pursue our strategy of balancing growth and returns," he added.
The stock was trading at 503.50 pence Friday morning, down 6.50 pence or 1.3%.
By Anthony Tshibangu; anthonytshibangu@alliancenews.com; @AnthonyAllNews
Copyright 2014 Alliance News Limited. All Rights Reserved.
