Rexam FY upbeat as profit rises 7 pct

The world"s biggest maker of aluminium beverage cans, said it was implementing price rises to recoup an increase in the cost of raw materials, notably aluminium. Rexam posted profit before tax, exceptional items and business disposals of 307 mln stg in the year to Dec 31, up from 288 mln.

In a statement, the company, which makes drinks cans for Coca-Cola Co, glass bottles and vials for Pfizer Inc, and lipstick cases for L"Oreal SA, said sales from continuing operations rose 8 pct to 3.2 bln stg. "We are confident that our strategy for growth, both organically and by acquisition, is sound. We anticipate that 2006 will be a year in which we will once again make further progress," chief executive Lars Emilson said.

The results were accompanied by an agreement to purchase Airspray, a Dutch manufacturer of foam pumps, for 146 mln stg. Net earnings were virtually flat at 224 mln stg, while diluted earnings per share climbed 12 pct to 39.4 pence. The company is proposing a final dividend of 10.6 pence per share, up 5 pct, giving a full-year payout of 18.12 pence.

Rexam shares closed yesterday at 502.5 pence, valuing the company at 2.8 bln stg.