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EX-DIV 24 April....anybody know why the surge in price today?
Share price may well have peaked at around 530 p however think that this company will almost certainly be taken over within the next two or three years...either by an American or Australian outfit.
REXAM: Credit Suisse shifts target price from 545p to 555p and stays with its neutral rating.
REXAM: Citigroup revises target price from 512p to 570p and still recommends buying.
"We saw good growth in all our regions with volumes up 6% and organic operating profit increasing by 5%. We are continuing to invest in new lines and capacity to support our future growth. However, as previously highlighted, healthcare had a difficult year largely due to one of our customer's products coming off patent."
Pre-tax profit fell 11.9 per cent in the full year to December 31st at FTSE 100-listed consumer packaging company Rexam. A difficult year in the healthcare products packaging section underpinned the results with healthcare operating profit down 26.3% to £48m. By contrast, beverage can volumes rose 6% and organic operating profit increased 5% to £456m. Overall, sales increased 2% to £4,312m. Underlying profit before tax rose 1% to £418m and underlying earnings per share jumped 5% to 35.5. The dividend per share rose 6% to 15.2p. Graham Chipchase, Chief Executive Officer of Rexam, commented on the results, saying: "In 2012, we made further encouraging progress. Beverage cans traded well driven by the global growth in specialty cans and a strong recovery in our market share in the US.
Positive Points: Accompanying management comments provided confidence with regards to the outlook for its important North American beverage can business. The CEO noted that "we expect to make further progress in 2013." The board noted that "we continue to focus on generating cash, managing costs and improving return on capital employed, and our progress to date gives us confidence in achieving our 15% return on capital employed target by the end of 2013." Growth in the Emerging Markets continues to be targeted. Rexam enjoys leading market positions in beverage cans in three out of the four BRIC countries. A new beverage can plant in Finland and a new line of operation was opened in Austria during the year. It also converted a line in Chicago to specialty cans, allowing it to meet growth in this segment in North America. Furthermore, a new line for aluminium cans was opened in Mumbai, India, at the end of the year, and a plant in Belém in Brazil is due to come on stream in the first quarter 2013 in time for a number of major sporting events such as the FIFA World Cup and the Olympics. Costs are still being targeted. Management noted that "we achieved another year of good cost savings." Group net debt at 31 December 2012 was £800 million, down from the previously reported £1.2 billion. Cash from the sale of its Personal Care business is being returned to shareholders. Rexam intends to return around £395 million to shareholders by way of a redeemable B share scheme, together with a share consolidation, a structure that gives shareholders flexibility in terms of tax treatment. A progressive dividend policy continues to be pursued. The total dividend for 2012 was increased by 6% compared to 2011
Negative Points: Difficulties at the group's Healthcare business continue to be suffered. Management noted that "Healthcare had a difficult year largely due to one of our customer's products coming off patent." Organic sales at the business were down 2% over the year. Management made reference to "an uncertain macroeconomic environment." The loss of a major customer contract could have implications. Rexam's top 10 beverage can customers accounted for over 70% of sales. Volatility in the price of key raw materials such as aluminium provides concern. Rexam is subject to foreign exchange movements.
Financial Highlights: Revenues from the continuing business rose by 2% to £4.31 billion Underlying or adjusted profit before tax rose by 1% to £418 million The total dividend for the year was increased by 6% compared to 2011 Following the sale of the Personal Care business, £395 million is being returned to shareholders
Full year results: The news generally pleased investors, with the share price rising by over 5% in mid morning trading. Underlying or adjusted profits materialised at the upper end of analyst expectations, whilst accompanying management comments helped raise confidence in the future. The Chief Executive noted that "we expect to see high-single digit to low double digit growth in North America" given growth in specialty cans there. He also noted that "further contractual gains in North America and continued growth in our European and South American beverage can businesses give us confidence we will achieve our 15% Return On Capital Employed (ROCE)" target for the company. Growth in the Emerging Markets continued to be pursued - almost 34% (2011 restated: 33%) of its sales now come from such regions - whilst new plants, cost savings and product innovations also remained in focus. In all, headwinds are being battled. The macroeconomic environment remains uncertain, whilst cost pressures (largely group raw material costs) remain. Nonetheless, a more focused approach is now being pursued, with its Personal Care business sold and investor returns being made.
expect some analyst upgrades on the back on todays results now..
this is one of the top ten ftse companies who benefit from weak sterling http://www.lse.co.uk/FinanceNews.asp?code=bbrc8eo0&headline=Sterlings_woes_pile_up_drops_to_7month_low_vs_dollar
REXAM: Credit Suisse moves target price from 490p to 545p and keeps a neutral rating.
Rexam: Jefferies raises target price from 395p to 500p and downgrades to hold.
Rexam (REX) Director name: Ms Johanna Waterous Amount purchased: 10,000 @ 433.78p Value: £43,378
Positive Points: The group's overall performance was highlighted by management as being “broadly in line” with its expectations. The board noted that “we continue to focus on generating cash, managing costs and improving return on capital employed, and our progress to date gives us confidence in achieving our 15% return on capital employed target by the end of 2013." Group net debt at 30 September 2012 was £1.2 billion, lower than at 30 June 2012, primarily due to the $250 million of proceeds from the sale of High Barrier Food. Growth in the Emerging Markets continues to be targeted. Cash from the sale of its Personal Care business is being returned to shareholders. As already announced, Rexam intends to return around £370 million of the proceeds to shareholders following completion of the disposal by way of a redeemable B share scheme, together with a share consolidation, a structure that gives shareholders flexibility in terms of tax treatment. A progressive dividend policy continues to be pursued. The interim dividend was increased by 6% to 5 pence.
Negative Points: A disappointing performance from the group’s Healthcare business was reported. Management continued to highlight a “challenging trading environment.” The loss of a major customer contract could have implications. Rexam’s top 10 beverage can customers accounted for over 70% of sales. Volatility in the price of key raw materials such as aluminium can provide headwinds. Rexam is subject to foreign exchange movements.
Third quarter update: A disappointing performance from the group’s relatively small Healthcare business – it generated around 10% of group revenues in the last financial year - overshadowed. Lost business for its animal healthcare segment impacted - the share price moved marginally lower in opening trade, down over 1.5%. Nonetheless, global volumes for its core beverage can business rose by 6% in the period. Excluding Russia, European volumes increased at a slightly lower rate than in the first half, while Russia returned to growth. In North America the recovery of some of the standard can volumes lost in 2011 continued to drive performance, with growth in South America accelerating. The two part sale of its Personal Care business continued to progress. The disposal of the High Barrier Food packaging segment had completed on 31 August 2012, whilst the board had received the necessary regulatory approvals for the Cosmetics, Toiletries and Household Care unit - although the timing of its final clearance cannot be certain. In all, management noted that “despite a challenging trading environment, the group's overall performance is broadly in line with our expectations.” For now, and with a more targeted and focused approached now seen as being pursued,
Company overview Rexam is a global consumer packaging company. It makes drinks cans for brands located worldwide. It also manufactures precision medical devices, from bronchial inhalers to transdermal drug delivery systems, as well as products for personal care applications. Its customers include AB InBev, Carlsberg, Coca-Cola and Heineken. It is listed on the London Stock Exchange and is a constituent of the FTSE 100 Index.
REXAM: Deutsche Bank raises target price from 480p to 500p and maintains a buy recommendation.
Rexam, the global consumer packaging company, has authorised the issue of 750m dollars-worth of senior notes in the US private placement market, ahead of the one billion pounds-worth of bonds maturing in the first half of 2013. These newly issued notes comprise $545m notes due on December 18th 2022, 25m euro-worth of notes due on the same day, and $175m of notes due on December 18th 2024. The average coupon on these new notes is just over 4%, compared with an average coupon of around 6% on the expiring notes. Owing to the timing of the maturity of the existing c£1bn bonds, the benefit of this lower interest rate will be realised from the second half of 2013, the firm said. David Robbie, Rexam's Finance Director, commented: "We are pleased to have signed the transaction successfully at a significantly lower coupon than our maturing bonds. Rexam has a strong capital structure and having significantly strengthened our balance sheet, we only sought to refinance a portion of the £1bn of bonds due to mature in 2013."
WHY REXAM IS UP 23% THIS YEAR LONDON -- Rexam (REX.L) has advanced 23% to 450 pence so far during 2012, making the share one of this year's best performers in the FTSE 100. The company, which is one of the world's leading producers of consumer packaging, seems to have impressed investors with a series of positive statements. During February, Rexam issued its final results for 2011. Underlying pre-tax profits were up 15% to 450 million pounds, and net debt was reduced by almost 30%. The strong results enabled the company to increase its total dividend by an impressive 20%. Plans to divest the group's personal-care business were also announced. During May, there was an interim management statement, which revealed there had been strong growth in beverage cans in Western Europe, continued good performance in specialty cans in North America, and some year-on-year growth in volume in South America. Then, in August, Rexam published its half-year report, with an encouraging performance underpinned by its beverage cans business, which saw a 6% increase in volume and a 9% rise in underlying operating profit. Commenting on the half-year results, chief executive Graham Chipchase said: We are encouraged by the progress of the continuing business in the first half and, in spite of a challenging trading environment, our overall performance was in line with our expectations. We are pleased to have announced the proposed sale of the Personal Care business and our intention to return around 370 million pounds to shareholders once the transactions are completed. In an increasingly uncertain macroeconomic environment, we will continue to focus on generating cash, managing costs and return on capital employed for the rest of 2012. Our progress to date gives us confidence of achieving our 15% return on capital employed target by the end of 2013. Rexam's next trading statement will be published on Nov. 15 and may reveal further upbeat news to impress investors. Source: http://www.dailyfinance.com/2012/10/11/why-rexam-is-up-23-this-year/ P.S. Here's some links about SCLP, one of the hottest stocks at the moment: http://www.euroinvestor.com/community/discussionthread.aspx?iid=2467508&threadid=256596&mode=2 http://www.euroinvestor.com/community/discussionthread.aspx?iid=2467508&threadid=255276&mode=2 http://www.euroinvestor.com/community/discussionthread.aspx?iid=2467508&threadid=257550&mode=2
VIDEO: IAIN PERCIVAL ON REXAM'S SUPPLY CHAIN & LOGISITICS Iain Percival, group operations director for Rexam, the world’s largest beverage packaging manufacturer, discusses the need for an efficient and sustainable supply chain. The company manufactures 60 billion cans per year which represents around a quarter of the overall sales volume of beverage cans in the worldwide market. Rexam's high manufacture rate creates a complex supply chain with suppliers spread out over 16 countries, so getting it right is critical. "The most serious failure in our supply chain would be to fail to support or deliver to a customer" says Percival. In order to avoid a supply chain failure, the business makes sure it always have a back-up plan, with multiple sources of supply and the ability to manufacture in multiple locations. The can, being infinitely recyclable, is a great product to fit the consumer expectation for environmentally-friendly packaging, so sustainability remains high on Rexam's corporate agenda. Working with its logistic suppliers, Rexam was able to increase the number of rail shipments, significantly reducing their CO2 submissions. Watch the interview with Iain Percival here: http://www.telegraph.co.uk/sponsored/business/norbert-dentressangle/9598979/video-rexam-supply-chain-logisitics.html
REXAM’S SLIM CAN BOOSTS IDENTITY OF SOFT DRINK BRAND Rexam Beverage Can has been chosen by SAAB Drink to produce the can for Meladaj, its new apple-based carbonated soft drink, which will be sold on the Italian market in bars, clubs and retail outlets. Rexam worked with Enrico Giotti to create the 25cl Slim aluminium cans, produced at Rexam’s Enzesfeld plant in Austria, which enhances the brand’s fun personality and heightens the impact of its colourful design. SAAB Drink worked with Rexam’s Graphics Department to adapt Meladaj’s vibrant design to the can printing process, which features a detailed apple drawing. The design is printed on a background of Rexam’s Bright White ink, which gives the can a sophisticated and glossy feel whilst enhancing the intricate details of the drawing. Aimed at young, witty and modern consumers, the name ‘Meladaj’ was specially chosen to target this market. The name uses the word “mela”, meaning apple, together with the question “me la dai?”, meaning “will you give it to me?”, to create a fun brand that encourages people to drink together and socialise. Angelo Schioppa, Owner of SAAB Drink, commented: “The Slim aluminium can is the perfect package for our product and really enhances the drinking experience. Meladaj is a relatively new brand, only entering the market in late 2011, but we are hoping to grow considerably in the next few years. The can that Rexam has helped us to create is appealing and helps to engage people’s curiosity, and is a really integral part of our brand identity.” Monica Mantovani at Rexam Beverage Can, added: “It has been really interesting working with a new brand such as Meladaj, and helping them to develop such a key part of their brand. The cans look fantastic and we were delighted to help them get the best out of their great brand design.” Source: http://www.packagingeurope.com/Packaging-Europe-News/50059/Rexams-Slim-can-boosts-identity-of-soft-drink-brand.html
if relative strength is one of your key investment metrics then packaging giant Rexam might be a stock for you, reckons merchant bank Beaufort International. Kenneth Pio D'Mello, a senior analyst at the bank, said Rexam has been added to the Beaufort top relative strength buy list. The chart-gazer recommends an entry point of between 430p and 440p and to get out quick if the shares dive below 400p. In D'Mello's view, 420p is a support level while a reading of the runes suggests an exit point for short term traders of 490p. Restructuring and cost reductions should improve operating profits, D'Mello suggests, in a nod of the head towards fundamental analysis. Those of you who put more stock in technical analysis might want to note than the moving average convergence-divergence indicator - which is designed to spot momentum changes and shows the relationship between two moving averages of prices - is positive, and the relative strength index is above 50.