Rexam's first-half profit drops 50% on higher metal premium

30th Jul 2015 09:36

(ShareCast News) - Rexam reported a 50% drop in first-half pre-tax profit as a higher metal premium, the commoditisation of certain specialty cans in North America and higher energy costs in Brazil offset a rise in revenue.The company, which makes drinks cans, said pre-tax profit came in at £82m from £164m in the same period a year ago, with basic earnings per share of 7.8p, down from 27.7p.Revenue rose to £1.97bn from £1.88bn as overall beverage can volumes rose 3%, while the interim dividend was held at 5.8p.Chief executive Graham Chipchase said: "Results for the half year were in line with our expectations. Trading in the first half was strong in Europe and the Rest of the World, but with some weakness in the Middle East. In the Americas, standard cans continued to decline whilst specialty cans continued to grow."Looking ahead, Rexam said 2015 remains in line with expectations, with softer volumes in North and South America offsetting the benefit of the current lower metal premium.At 09:36, Rexam shares were up 0.1% at 549.30p.