Rexam First-Half Profit Falls 24%, Hurt by Glass Disposal Costs

Date: 26 August 2005
Source: Bloomberg.com

Date: 26 August 2005

Rexam Plc, the world's largest beverage-can maker, said first-half profit fell 24 percent partly on one-time costs for the sale of its U.K. glass unit.

Net income dropped to 68 million pounds ($122.9 million), or 12.3 pence a share, from 90 million pounds, or 16.3 pence, a year earlier, the London-based company said today in an e-mailed statement. Sales rose 2.1 percent to 1.56 billion pounds.

Rexam incurred a 24 million-pound loss before tax from the sale of its U.K. glass business in May. Chief Executive Lars Emilson is focusing the company's glass operations elsewhere in Europe while building can-making plants in China, India and Latin America, where demand is growing faster than in the U.S. and Europe. Rexam gets about 80 percent of revenue from selling cans to companies such as Coca-Cola Enterprises Inc. and PepsiCo Inc.

``The U.K. glass market is facing a difficult outlook with new capacity coming on stream and we felt that, as a single-site operation and the number three market player, we were not best positioned in this local market,'' Rexam said in its statement.

More on the source link
600450 Rexam First-Half Profit Falls 24%, Hurt by Glass Disposal Costs glassonweb.com

See more news about:

Others also read

MORE...

Emirates Glass wins major supply contract for Palm Jumeirah
Emirates Glass, a Dubai Investment subsidiary, has won a major contract to supply 140,000 square meters of its premium glass to the prestigious development on the Palm Jumeirah, reaffirming its already established reputation as the single most prominent company in the entire regional glass industry.The deal was announced during the company's participation in the prestigious Big 5 show, the largest annual venue for the entire Middle-East glass contracting industry.
Rexam, buyout firms to bid for Calmar-sources
Packagers such as the UK's Rexam and private equity firms are set to vie for pump-sprayer business Calmar, which France's Saint-Gobain (SGOB.
ISRA Receives Major Display Glass Inspection Order
Isra Vision Systems AG supplier of machine vision systems, has successfully improved its market position in display glass inspection with a major order totalling 1.8 Mio Euro.
Company to close lime plant in Carey next month
The National Lime & Stone Co. will discontinue production of calcined lime early next month at its Carey plant, the company CEO announced Thursday.
China glass import a cheaper option for Amritsar firm
Jain Scientific Glass Works, manufacturers of glassware for laboratories, is importing glass as raw material from China, which was much cheaper than the local product and abundantly available.
Asahi Glass, Oracle, TDK, Seven & I: Japanese Equity Movers
The following stocks are moving in Japanese markets today. Prices are as of 12:55 p.m. at the Tokyo Stock Exchange. Stock symbols are in parentheses after company names.

Add new comment