Rexam PLC (REXMY: OTCQX International Premier) | Rexam plans to sell Healthcare and updates on half year trading

Rexam plans to sell Healthcare and updates on half year trading

Jun 25, 2013

OTC Disclosure News Service

London, United Kingdom

Rexam,
the global consumer packaging company, today issues an update on half year
trading and announces that it has initiated a process to sell its Healthcare
business.

Update on trading

As
previously indicated in our April IMS, beverage can volume growth began the
year more slowly than planned.  The
summer season traditionally influences our results, but while North America has
continued to perform strongly, volumes have been disappointing in South America
and Western Europe in the last two months. 
For the five months to the end of May global volumes grew by 1% versus
last year and as a result, despite an increased focus on cost management, our
operating performance[1] in
the first half of the year will be slightly below that of last year.

Whilst
we have accelerated our cost mitigation measures, we now expect full year
performance to be modestly lower than previously anticipated.  Volumes have seen some improvement in Brazil
in June, as we regain market share, and the second half should benefit from increased
cost reductions and certain contractual price/volume arrangements in Europe.

Sale of Healthcare

In line with our long term strategy to focus on beverage cans and
maximise shareholder value,
the
Board has initiated the process to sell the Healthcare business.  In addition, we are making encouraging
progress in pursuing beverage can investment opportunities in higher growth
markets.

 

Graham
Chipchase, Rexam’s Chief Executive said: ?It has been a challenging first half,
but we have taken assertive action on costs to mitigate the impact on our
performance and maintain our capital discipline.  Although we are still in the midst of our
seasonally important summer period, we are managing the business proactively to
overcome these challenges, and we continue to
expect
full year performance to show improvement over 2012, even if progress is likely
to be less than previously anticipated.
  Following the proposed sale of Healthcare, Rexam
will be a focused beverage cans business with a strong balance sheet and a
clear strategy to maximise long term shareholder value.?


 

25
June 2013


Rexam will host a conference call for investors and analysts on Tuesday 25 June at 8am (UK
time).

Participants
dial-in number:

UK:                              + 44 (0)20 3139
4830 

US:                              +1 718 873 9077

Password:                   33954272#


A replay service will be available until 2 May 2013:

Dial-in
number:

UK Toll Free:               +44 (0)20 3426 2807 

US Toll Free:               +1 866 535 8030

Password:                   640240#

 

Enquiries                                                                                                                              

Investors

Sandra Moura, Head of Investor Relations,
Rexam
                 +44 20 7227 4100

 

Media                                                                                                                           

Jonathan Thornton, Head of Communications,
Rexam            +44 20 7227 4100

Katharine Wynne, Tulchan
Communications                             +44 20 7353 4200

Martin Robinson, Tulchan
Communications                              +44 20 7353 4200


[1] For
continuing operations and restated for IAS 19.

The above news release has been provided by the above company via the OTC Disclosure and News Service. Issuers of news releases and not OTC Markets Group Inc. are solely responsible for the accuracy of such news releases.

Article source: http://www.otcmarkets.com/stock/REXMY/news?id=64990

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