RPC confident about pre-tax profits

However, the rigid plastics group said that, as previously anticipated, first-half revenues are expected to be down, compared with the same period in 2008.

RPC attributes the decline to falling sales volumes and polymer price reductions that have been passed on to customers.

However, it anticipates operating profits (before restructuring and impairment charges) to be ahead of those in the first half of 2008/2009 thanks to improving margins, lower costs and “manning levels substantially reduced”.

The cost-reductions are notably due to the company’s RPC 2010 restructuring programme, which it announced last June and has resulted in plant closures over the last year including at Mozzate in Italy, Aš in the Czech Republic and Ravenstein in the Netherlands.

Ron Marsh, RPC’s chief executive, said: “The current economic environment is difficult and has impacted volumes, although the customer de-stocking effect appears to have run its course.

“Measures have been taken to address the cost base, which together with a much needed restoration of margins, has so far more than offset the volume impact.”

Marsh added that the prospects for 2010 “are good, with overall industry dynamics improving” and that the RPC 2010 programme is “delivering as promised”.

In July, RPC issued a trading statement that said that first-quarter profits had risen due to its restructuring plan.

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