The beginning of the month saw Rexam PLC announce its results for the first half of 2014 to show that the company's strategy was on track as the half year results were in line with expectations.

Commenting, Graham Chipchase, Rexam's chief executive, said:

"Results for the half year are in line with our expectations. Trading in the second quarter improved in all regions with volume growth in Europe improving as anticipated and North America performing in line with the market. South America grew very strongly as we saw a significant benefit from customer activity around the FIFA World Cup.

The sale of the Healthcare business and the return of c£450m of proceeds to shareholders marked the end of our portfolio transformation. Rexam is now a focused global beverage can maker. Our aim is to be the best in the industry by maintaining a strong focus on cash, cost and return on capital employed and delivering the right balance of growth and returns.

Despite ongoing foreign exchange translation headwinds and metal premium cost at an all-time high, the business is in good shape operationally and we continue to expect to make further progress in 2014 on a constant currency basis."

Highlights

• Beverage can volumes up 4%
• Foreign exchange translation and metal premium costs impact underlying operating profit
• Organic (year on year change arising on continuing operations at constant foreign exchange rates) operating profit flat
• Return on capital employed 14.0% (June 2013: 13.7%)
• Portfolio transformation complete and c£450m of Healthcare disposal proceeds returned to shareholders
• Interim dividend up 2% to 5.8p

The future

Operational excellence and efficiencies

Rexam's core manufacturing skills are based on converting sheet metal into beverage cans. That is where Rexam creates the vast majority of its value and is able to generate sustainable competitive advantage. The company has a strong track record of delivering efficiencies. In the first half of 2014, Rexam delivered £8m in savings and remains on track to deliver its target of £20m per year.

At the start of the year, the world class standard of our manufacturing operations was again recognised by The Shingo Institute – a global reviewer of operation al excellence. Rexam's beverage can making plant in Enzesfeld, Austria, became its first European plant to receive Shingo accreditation while its South American headquarters in Rio de Janeiro became the first corporate office in the world to be recognised by the Institute.
The two sites join five other Rexam plants that have already achieved Shingo recognition.

The company's pursuit of excellence continues with several of its plants currently preparing for assessment. The internal restructuring of its business in Europe into four distinct but interdependent regions during the first quarter is helping to reduce SG&A costs but, importantly, ensures that the company is even better placed to address the needs of customers in an increasingly complex market.