Rexam Drops Despite Rise in Sales
LONDON -- Rexam (ISE: REX.L) , the global consumer packaging group and beverage can maker, is currently down 3.2% despite reporting a 3% increase in sales in its half-year results this morning. The results could have been rather more disappointing had a 9% increase in operating profit at its beverage can division not helped to offset poor performance at its health-care division, where sales declined 2% and operating profit slumped 25% to 27 million pounds from 2011's 36 million pounds.
Rexam chief executive Graham Chipchase said:
We are encouraged by the progress of the continuing business in the first half and, in spite of a challenging trading environment, our overall performance was in line with our expectations.
In an increasingly uncertain macroeconomic environment, we will continue to focus on generating cash, managing costs and return on capital employed for the rest of 2012. Our progress to date gives us confidence of achieving our 15% return on capital employed target by the end of 2013.
Rexam also announced that an agreement had been reached on the disposal of its personal-care business and the intention to return about 370 million pounds of the proceeds to shareholders.
And despite today's fall, Rexam's share price remains up more than 40% from a low of 295.1 pence last September, which is an excellent performance in such challenging economic conditions and suggests this morning's fall may just be a blip of temporary disappointment.
Rexam's performance is just one example of how a good company can thrive even in difficult times. If you're looking for great returns, our free Motley Fool report "10 Steps To Making A Million In The Market" could help you on your way. The report highlights how choppy markets can still provide the big winners to take you to that magic million. You can download the report for free right now, but hurry -- the report is available for a limited time only.
Investing is by no means easy in today's uncertain economy. That's why we've published "Top Sectors for 2012" -- our guide to three favorable industries. This free report will be dispatched immediately to your inbox.
Further Motley Fool investment opportunities:
The article Rexam Drops Despite Rise in Sales originally appeared on Fool.com.Jon doesn't own shares in Rexam. The Motley Fool has adisclosure policy. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. Try any of our Foolish newsletter servicesfree for 30 days.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.