Rexam on line to meet full year expectations as can volume rises

Can beverage maker Rexam said an increase in can volume in the third quarter had contributed to keep trading in line with expectations in the second half of the year.

In the three months to the end of September, global beverage can volumes rose 3% year-on-year, despite a subdued performance in the Middle East and North America, with the latter still affected by a decline in the soft drink market.

Growth in the European market registered an expected slowdown, while volumes in South America returned to growth on the back of a stronger performance in the specialty can division.

The FTSE 250 group said expectations for the full year remain unchanged, although it warned of a more challenging environment next year as the restructuring programme it launched earlier this year will offset the reduction in prices the company is currently facing in Europe.

"We continue to expect growth in global can volumes in 2016 despite the tough trading environment,” said group chief executive Graham Chipchase.

“Our focus will remain on tight cost management and the elements of our business that we know we can control."

Meanwhile, Rexam said its proposed £4.3m takeover by US metal packaging giant Ball has been momentarily halted by regulators, with Brazilian and European Union authorities raising competition concerns over the deal.

However, Ball is currently negotiating with regulators in a bid to solve the issues that have been flagged and Rexam expects the deal to be finalised in the first six months of 2016.

Rexam shares were up 0.27% to 552.50p at 0846 GMT on Thursday.