Rexam's can operations in both the US and Europe are looking strong for the year ahead, with the US market recovering from the recent lull and the European market continuing to show strong growth.
A series of targeted acquisitions during the course of the last year have provided Rexam with the market power to raise prices and thus increase its profit margins.
Following an investors seminar, held last month, a trading update revealed that the price recovery in US cans was delivering "good growth and strong results", while analysts estimate that the European can division is currently showing a very healthy 5 per cent growth rate.
In a statement released at the seminar a Rexam spokesman stated:"In the Beverage Packaging operations, the price recovery in the United States beverage can market is having the expected positive impact on margins and results. In Europe the beverage can operation continues to deliver good growth and strong results. Glass is well ahead of last year, and the recent acquisition of the German glass container manufacturer Nienburger is seen as a first important step in the consolidation of the German glass market."
Rexam bought German operation Nienburger Glas for £68 million (€104.7m). Glass now accounts for around 10 per cent of earnings and analysts believe that further acquisitions are likely in this sector.
The luxury beauty packaging division is one area of business that remains soft, as consumers keep a lid on their budgets. However Rexam's packaging continues to remain strong in the areas of food and drink, where fluctuations in general economic activity are not as strongly felt.
Analysts are forecasting pre-tax profits of £246 million for the current financial year.