Europe's largest drinks can maker Rexam reported full-year profits largely in line with expectations, as strength in its core beverage cans business offset continued weakness at its plastic packaging unit.
The British firm said today it did not expect a turnaround in plastic packaging in the near term. It added that it had decided to hive off the under performing personal care segment of this business, but plans to retain the healthcare unit.
Rexam had said last November it was exploring all options for its personal care segment of its packaging business, including a sale.
The firm, which makes Red Bull and PepsiCo cans, as well as packaging for food, healthcare and cosmetic products, said full-year pretax profit rose 15% to £450 million, in line with a consensus forecast of £447 million, according to a company-supplied poll.
The rise was driven by a 14% jump in underlying operating profit at Rexam's beverage cans unit, which now accounts for 81% of group profit.
Operating profit at the company's plastic packaging unit, meanwhile, fell 14% hurt in part by higher costs.
Shares in the company closed at 384.4p last night, valuing the business at about £3.4 billion.
