LONDON (Alliance News) - Rexam PLC on Thursday said trading in the second half of 2015 has been in line with its expectations, with beverage can volumes higher in the third quarter.
The FTSE 250-listed can maker, currently in the process of being acquired by US metal packaging supplier Ball Corp, said overall global beverage can volumes were up 3.0% in the third quarter to the end of September. Volume growth in Europe slowed in line with expectations, while volumes were subdued in the Middle East.
Standard volumes in North America are still taking a hit from the decline in the soft drinks market in the country, Rexam said, but volumes in South America returned to growth in the third quarter thanks to stronger growth in specialty can volumes.
Overall, Rexam, said its expectations for the full year are unchanged, but it said the outlook for 2016 points to a more challenging market. The pricing reductions it is facing in Europe will be mostly offset by a restructuring programme the group launched earlier in 2015.
Rexam's GBP4.3 billion acquisition by Ball has run into some regulatory hurdles, with competition concerns raised about the deal by authorities in Brazil and the European Union. Ball is working with regulators in both jurisdictions to try and remedy the issues raised. Rexam said it still expects the deal to close in the first half of 2016.
"We continue to expect growth in global can volumes in 2016 despite the tough trading environment. Our focus will remain on tight cost management and the elements of our business that we know we can control," said Rexam Chief Executive Graham Chipchase.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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