Healthcare performance lets down half-year results.
Rexam (LSE: REX) -- 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 beverage can operating profit not helped to offset poor performance in its healthcare division, where sales declined 2% and operating profit slumped 25%, down to £27m from 2011's £36m.
Graham Chipchase, Rexam's chief executive, 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 agreement had been reached on the disposal of its personal care business, and the intention to return around £370m of the proceeds to shareholders.
And despite today's fall, Rexam's share price remains up over 40% from a low of 295.1p 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.
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> Jon doesn't own shares in Rexam.