Packaging group Rexam PLC (LSE: REX) said first quarter underlying operating profit was in line with last year, albeit with the benefit of foreign exchange translation.
In an interim management statement for the three months ending March 31 2009, the company said its Beverage Cans business is holding up reasonably well, although it is seeing weaker than expected volumes in Europe, especially Russia.
In its cans business globally, it has reduced inventory levels in the first quarter to meet market demand and optimize cash flow. Rexam expects the second half of 2009 to improve on the first half due to the traditionally busier summer season.
Plastic Packaging continued to be affected in the first quarter by customer destocking and the impact of the economic downturn, but overall performance was in line with expectations.
“At the end of the quarter, net debt was £2.7 billion, better than our plans at this stage of the year, and cash flow is progressing well as we reduce capital expenditure and improve working capital. The negotiation for the refinancing of the £775m revolving credit facility expiring in November 2010 is on track and is expected to be completed in the first half,” Rexam said.