LONDON Global packaging
company Rexam Plc posted a moderate increase in revenue last
year after regaining a large part of the U.S. beverage can
market share that it lost in 2011.
The London-based companys
sales increased 1.9 percent to £4.31 billion ($6.58
billion) from £4.23 billion, thanks to a 6-percent
increase in total beverage can sales volumes, but net income
plunged 43.1 percent to £214 million ($326.3 million)
from £376 million.
Rexams beverage can sales
in the United States grew 12 percent last year, recapturing
about a third of the share lost when it renegotiated its
contracts with Coca-Cola Co. in 2011.
"Beverage cans traded well,
driven by the global growth in specialty cans and a strong
recovery in our market share in the U.S.," chief executive
officer Graham Chipchase said in a statement released with
earnings. "We saw good growth in all our regions, with volumes
up 6 percent and organic operating profit increasing by 5
Rexam is putting a greater focus
on its beverage can business after completing the sale of its
personal-care business to French packaging company Albéa
Group, an affiliate of Sun European Partners LLP, for $459
million in January, and its high-barrier food container
business to a subsidiary of Silgan Holdings Inc. for $248.1
million last August.
The company also is investing
heavily in its beverage can business after expanding its
capacity in India and Australia last year. It opened a new can
manufacturing plant in Finland last month, is opening another
in Brazil in the coming months and this week announced plans to
build yet another new can plant in Switzerland.
"We are continuing to invest in
new lines and capacity to support our future growth," Chipchase
said. "We expect to make further progress in 2013 despite an
uncertain macroeconomic environment and continued cost
"Further contractual gains in
North America and continued growth in our European and South
American beverage can businesses give us confidence we will
achieve our 15-percent (return on capital employed) target,"
A version of this story was first published in AMM sister
publication Metal Bulletin.