Rexam profits tumble as company restructures

The beverage can and plastic packaging manufacturer reported that a £240m pre-tax profit in 2008 had fallen to a £59m loss for the year ending 31 December 2009, despite increasing sales.

The London-based company incurred a £196m goodwill impairment charge and a £108m restructuring charge during the period due to the difficult economic times.

Sales rose 5% to £4.8bn last year and volumes appeared to be stabilising, according to Rexam chief executive Graham Chipchase, who succeeded Leslie Van de Walle last month.

Chipchase revealed that there was “ongoing uncertainty” in the Beverage Cans Europe business as to the development of speciality cans and potential new taxes on beer.

“We believe that the trading environment will remain challenging throughout the year, but as we benefit from the cost saving measures we are taking, overall we expect our performance to improve in 2010,” said Chipchase.

Rexam revealed today that it had reduced net debt to £1.8bn.

The company announced in January that it would close its plastics operation in Nashua, New Hampshire in the fourth quarter of 2010.

The news followed the sale of Rexam’s personal care facility in Wisconsin in the US in a management buy-out.

In September last year Rexam restructured its make-up business by cutting 96 and 92 jobs at its Simandre and Reboul sites in France, respectively of a total 614 workforce.

REXAM 2009 RESULTS

Sales £4.8bn (2008: £4.6bn)

Loss/profit before tax £59m loss (£240m profit)

Operating profit £ 92m (£380m)

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