Rexam FY15 Profit Declines, Sales Rise; Sees Continued Volume Growth In FY16

(RTTNews) - Beverage can maker Rexam plc (REX.L, REXMY.PK), which is in deal to be acquired by Ball Corp. (BLL), reported Thursday that its fiscal 2015 profit before tax declined to 250 million pounds from last year's 343 million pounds.

Total basic earnings per share were 25.9 pence, down from 48.4 pence last year.

Underlying profit before tax was 362 million pounds, compared to 360 million pounds last year. Underlying earnings per share were 39.1 pence, compared to 37.2 pence a year ago.

Sales for the year went up 2 percent to 3.93 billion pounds from prior year's 3.83 billion pounds. Organic sales growth was 1 percent.

Beverage can volumes including UAC went up 4%.

Further, the company declared a final dividend of 11.9p, taking total to 17.7p in line with 2014, consistent with the terms of the Ball offer.

Graham Chipchase, Rexam's chief executive, said, "We expect 2016 to present a tough trading environment but with continued volume growth. The expected premium benefit will be offset by pricing pressures in Europe and the savings from restructuring will be partially offset by cost headwinds. However, as ever, we continue to focus on tight cost management and the elements that we know we can control."

Further, the company said the recommended offer by Ball is progressing with completion expected towards the end of H1 2016.