UK: Rexam reports FY profits leap

• Full-year net profits quadruple to GBP376m (US$589.4m)
• Operating profits grow by 7% to GBP549m
• Sales amount to GBP4.73bn, a 2% increase on the prior-year period
• 2012 will be "another year of progress"

Rexam has recorded an increase in full-year profits and said that it expects another year of progress in 2012.

For the 12 months to the end of December, pretax profits climbed by 15% to GBP450m (US$705.4m). Net profits rose four-fold to GBP376m.

The UK packaging firm attributed the increase to a "better than expected" performance in its beverage cans business, primarily in Europe, and a continued focus on cost management.

Operating profits in the period grew by 7% to reach GBP549m. Sales amounted to GBP4.73bn, a 2% increase on the prior-year period.

Rexam's chief executive Graham Chipchase said the company was pleased with the continued progress of the business in 2011, but added: "Looking ahead, we remain cautious about the global economy and, as previously indicated, we face certain cost challenges in 2012 together with the impact of a key healthcare product coming off patent."

Despite this, Rexam said it expects 2012 to be "another year of progress as we continue to focus on cash, costs and return on capital employed". No net profits figure was given for 2011.

Click here to view the full earnings release.