Rexam reaps cost reduction rewards
1 min read
Can maker Rexam said today (28 July) that the cost reduction and efficiencies programme it had instigated in both its beverage cans and plastic packaging operations in response to a significant reduction in volumes and profits in 2009 was on plan, amounting to £51m in savings during the half year to 30 June.
The restructuring in beverage cans, which included the closure of four plants, is complete while the restructuring in plastic packaging is in its final stages: six plants have been closed already and two more will follow before the end of the year. Since the start of 2009, Rexam has reduced its headcount by around 2,200 people and this is expected to rise to 2,300 by year end.
In the six months to 30 June, sales fell marginally to £2.49bn compared to £2.52bn for the same period last year while underlying pre-tax profit rose from £135m to £198m.
Chief executive Graham Chipchase (pictured) said that "relentless" cost control had driven strong profit growth. The outlook for the beverage cans business had improved since the start of the year. However, uncertainty persists about the global economic outlook and visibility remains low.
