Rexam PLC said that its first-half underlying profit fell 3% as a result of rising input costs but said it will make progress in the 2H/06. Rexam said trading remains in line "despite the challenging cost climate our industry is facing". The company will focus on margins management through pricing & cost efficiencies. The company's underlying pretax profit in the 6m to 30 June/06 was £137M, down from £141M for the 1H/05. Sales grew 20% to £1.8BN compared with £1.5BN over 2005. Glass sales rose 7% in the 1H/06 through a combination of successful price increases, higher volumes & improvements to the mix, Rexam said. Demand for glass remains good & the industry in Europe is now in better balance than for a number of years. However, increased sales were not enough to offset the £11M rise in energy costs & as a result, operating profit was lower than the equivalent period in 2005.
