Rexam warns of 15 mln stg impact from North American strike action |
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Thu, 03 May 2007 11:32
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LONDON (Thomson Financial) - Rexam PLC, the global consumer packaging and beverage can maker, has warned strike action at its North American beverage can plants has cost it up to 15 mln stg.The strike began on Apr 10 involving nine of its plants.On May 1, Rexam negotiated a 'Tentative Agreement' with its US workers and plant union presidents which will be put to the members' vote later this week.Excluding the effect of the US strike, Rexam currently anticipates the outcome for the year as a whole to be in line with its expectations, although, as advised alongside its final results in Feb 2007, it still expects the impact of input costs to be most severe in the first half of the year.Chairman Rolf Borjesson will tell today's annual general meeting that trading during the first quarter was 'on track'.In European beverage cans, Borgesson will say Rexam has implemented price increases on its open contracts, while volume growth continues to be strong to balance higher-than-expected aluminium costs.In the Americas, he will tell shareholders that, while volumes remain buoyant in South America, demand for soft drinks cans in the US has started slowly across the industry.Borjesson will say plastic packaging overall is on plan while the restructuring programme announced late last year in Make Up is nearing completion.tf.TFN-Europe_newsdesk@thomson.commsc/slmCOPYRIGHTCopyright AFX News Limited 2007. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.
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Goodyear Q1 EPS 0.61 usd loss vs 0.23 usd profit 