Rexam the drinks can maker, reported a loss for the first half of 2009 & warned that it sees no upturn in trading for the rest of the year. Net losses for the 6m to 30 June were £15m (US$24.5m), compared to profits of £97m in the same period of 2008, said the UK-based packaging group July 2009. Underlying net profits, before one-off charges, fell 15% to £135m. Favourable exchange rates saw net sales rise by 15% to £2.5BN, but like-for-like sales fell by 6%. The group announced a plan to raise £350m in order to avoid losing its investment grade credit rating. Rexam CEO L. Van de Walle said he saw "No upturn in trading conditions through the rest of 2009." Plastic packaging has been the division worst hit, with like-for-like sales down 18% for the 6m. Plant closures & job cuts across the business, particularly in the US, are expected to yield cost savings. of £75m from 2010. Rexam said it remained confident on paying down debt. "Against a difficult credit environment Rexam has been successfully refinancing its banking facilities in advance of them falling due; in total, some GBP1.3bn was refinanced in the first half of 2009. In the first quarter of 2009, Rexam secured GBP453m of bilateral facilities to underpin its access to liquidity."
