Rexam Half Year Results 2009

Resilient trading performance with significant cost reductions underway. Rexam, the global consumer packaging company, announces its results for the six months to 30 June 2009.

Key points

Sales up 15% owing to favourable foreign exchange translation
Underlying operating profit stable helped by favourable foreign exchange translation
Organic underlying operating profit down by 20% impacted by weak volumes – especially tough in Plastic Packaging and parts of Beverage Can Europe
Strong cash flow performance with net debt at £2.1bn
Cost reductions continue with savings expected to amount to c £75m pa in 2010
Successful refinancing of £1.3bn credit facilities
£350.7m Rights Issue announced today
No 2009 interim dividend declared and new dividend policy announced
Commenting on the 2009 half year results, Leslie Van de Walle, Rexam´s CEO, said:

"Rexam continues to deliver a relatively resilient operational performance against a very challenging backdrop. We have taken significant and appropriate action to mitigate the effect of the downturn and the Rights Issue announced today will strengthen our financial position with regard to our investment grade rating. We see no clear upturn through the rest of the year in current trading conditions. However, during 2010 the cost savings already announced and the further savings identified will have a material benefit giving us greater confidence in our performance. Looking further ahead, the higher degree of cyclicality of parts of our business, added to the strength of our core operations, will leave us well placed to participate fully in the upturn when it comes."