One-off charges have dragged drinks packaging giant Rexam to net losses for 2009, but the group said its cost savings programme is ahead of schedule.
UK-based Rexam reported net losses of GBP29m (US$45.7m) for the 12 months to the end of December, against profits of GBP171m in 2008.
A GBP196m impairment charge and a GBP108m restructuring charge wiped out earnings for the year, said the group today (17 February).
Net sales rose by 5% to GBP4.86bn, largely due to favourable foreign exchange rates against sterling. Operating profits tumbled to GBP92m, against GBP380m a year earlier.
“Trading conditions were difficult throughout 2009,” said Rexam CEO Graham Chipchase. “However, we produced a strong cash performance, our cost reduction programme is ahead of plan and we delivered record efficiencies.”
He gave a mixed outlook for 2010.
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By GlobalData“Although the strength of any global economic recovery is unclear, volumes appear to be stabilising. However, we expect business conditions in a number of our operations to remain tough.”
Chipchase highlighted “an enduring weakness in beverage closures” and uncertainty over beer sales in Russia as areas for concern.