Factory closures help profit growth at RPC

In a trading statement RPC said revenue in the first half of the financial year 2009/10 is expected to be down compared to the corresponding period last year as polymer price reductions had been passed through to customers and overall sales volumes reduced. Although the general economic climate continued to be challenging, the company said it appeared that effects of customer de-stocking had come to an end in the majority of the sectors that RPC supplies. However, operating profit was anticipated to be ahead of the corresponding period last year as the volume shortfall is more than compensated by a restoration of margins and lower costs with manning levels substantially reduced. The group's 'RPC 2010' programme -- which includes the closure of plants in the Czech Republic, the Netherlands, Italy and ), Raunds in the UK – was progressing well it said. Plant closures were ahead of schedule and further cost savings in procurement had been identified. RPC's CEO Ron Marsh said: "Measures have been taken to address the cost base which together with a much needed restoration of margins has so far more than offset the volume impact. I believe that RPC's prospects are good with overall industry dynamics improving and our self-help plan RPC 2010 delivering as promised."