LONDON -- Shares in Rexam (REX) fell over 5% in early trade this morning after revealing a number of important changes in its half-year results.
The beverage-can maker issued a minor profit warning following "disappointing" volumes in South America and Western Europe over the last two months. North America continues to perform well, however.
Today's news confirms previous indications that beverage-can volume growth began the year more slowly than planned. As a result, full-year performance is expected to be "modestly" lower than previously anticipated.
Chief executive Graham Chipchase commented:
It has been a challenging first half, but we have taken assertive action on costs to mitigate the impact on our performance and maintain our capital discipline. Although we are still in the midst of our seasonally important summer period, we are managing the business proactively to overcome these challenges, and we continue to expect full year performance to show improvement over 2012, even if progress is likely to be less than previously anticipated.
The multi-faceted company has also decided to focus on producing beverage cans and, as such, has initiated the process to sell its health care division. Management claims that this will help to maximize shareholder value, with Chipchase stating: "Following the proposed sale of Healthcare, Rexam will be a focused beverage cans business with a strong balance sheet and a clear strategy to maximize long term shareholder value."
The company has seen steady growth in recent years, climbing as high as 546 pence in 2013. Rexam did also state that the summer season traditionally influences its results, and although today's news further depresses a share price that has been sinking since April's initial warning, at around 445 pence today the company could present a buying opportunity.
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