LONDON (ShareCast) - Consumer packaging firm Rexam and molten metal engineering outfit Vesuvius were giving the industrial sector a lift on Friday as investors celebrated the companies’ half-year results.

Rexam, the FTSE 100 group which makes beverage cans and packaging for healthcare/personal care products, pleased the market after sales and profits both came in ahead of expectations.

The company disappointed in June after warning that its operating performance in the first half would be below last year. It also said it would be selling off its Healthcare business to focus solely on cans.

Nevertheless, total group sales including both divisions edged higher during the period from £2,165m to £2,195m, the firm said today, coming in ahead of the consensus estimate of £2,188m. Earnings before interest and tax dipped from £253m to £240m but this also was better than the £233.5m forecast.

“The ostensibly disappointing June 25th trading update may have dominated the equity story for a time, but we were pleased to see the update also refers to Rexam making encouraging progress in pursuing beverage can investment opportunities in higher growth markets,” said analysts at Jefferies today.

Rexam was 1.88% higher at 515.5p by 15:25 on Friday afternoon.

Sector peer RPC Group, which manufacturers plastic packaging and containers for food, household and medical products, was also performing well today rising 1.12% to 468.2p.

Vesuvius was a high riser today, gaining 10.23% to 485p after saying it made a “solid” performance in tough markets during the first half.

While revenues and profits did slip year-on-year due to weak conditions in the global steel and foundry end-markets, the performance was better than the second half of 2012 as these markets stabilised with rapid industry de-stocking coming to an end.



Top performing sectors so far today
General Industrials 4,181.06 +1.35%
General Retailers 2,690.18 +0.95%
Construction & Materials 3,933.12 +0.73%
Health Care Equipment & Services 4,440.28 +0.68%
Electronic & Electrical Equipment 4,034.43 +0.48%

Bottom performing sectors so far today
Real Estate Investment & Services 2,671.68 -1.35%
Oil Equipment, Services & Distribution 23,846.86 -1.18%
Mining 16,162.31 -1.13%
Tobacco 38,285.81 -1.12%
Forestry & Paper 10,550.55 -1.11%

BC

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