Rexam Share Discussion Threads

[northernlass] 23/10/2012 03:48

WHY REXAM IS UP 23% THIS YEAR

LONDON -- Rexam (REX.L) has advanced 23% to 450 pence so far during 2012, making the share one of this year's best performers in the FTSE 100.

The company, which is one of the world's leading producers of consumer packaging, seems to have impressed investors with a series of positive statements.

During February, Rexam issued its final results for 2011. Underlying pre-tax profits were up 15% to 450 million pounds, and net debt was reduced by almost 30%. The strong results enabled the company to increase its total dividend by an impressive 20%. Plans to divest the group's personal-care business were also announced.

During May, there was an interim management statement, which revealed there had been strong growth in beverage cans in Western Europe, continued good performance in specialty cans in North America, and some year-on-year growth in volume in South America.

Then, in August, Rexam published its half-year report, with an encouraging performance underpinned by its beverage cans business, which saw a 6% increase in volume and a 9% rise in underlying operating profit.

Commenting on the half-year results, chief executive Graham Chipchase said:

We are encouraged by the progress of the continuing business in the first half and, in spite of a challenging trading environment, our overall performance was in line with our expectations. We are pleased to have announced the proposed sale of the Personal Care business and our intention to return around 370 million pounds to shareholders once the transactions are completed. In an increasingly uncertain macroeconomic environment, we will continue to focus on generating cash, managing costs and return on capital employed for the rest of 2012. Our progress to date gives us confidence of achieving our 15% return on capital employed target by the end of 2013.

Rexam's next trading statement will be published on Nov. 15 and may reveal further upbeat news to impress investors.

Source:


P.S.
Here's some links about SCLP, one of the hottest stocks at the moment:

[northernlass] 23/10/2012 03:46

VIDEO: IAIN PERCIVAL ON REXAM'S SUPPLY CHAIN & LOGISTICS

Iain Percival, group operations director for Rexam, the world's largest beverage packaging manufacturer, discusses the need for an efficient and sustainable supply chain.

The company manufactures 60 billion cans per year which represents around a quarter of the overall sales volume of beverage cans in the worldwide market.

Rexam's high manufacture rate creates a complex supply chain with suppliers spread out over 16 countries, so getting it right is critical.

"The most serious failure in our supply chain would be to fail to support or deliver to a customer" says Percival.

In order to avoid a supply chain failure, the business makes sure it always have a back-up plan, with multiple sources of supply and the ability to manufacture in multiple locations.

The can, being infinitely recyclable, is a great product to fit the consumer expectation for environmentally-friendly packaging, so sustainability remains high on Rexam's corporate agenda.

Working with its logistic suppliers, Rexam was able to increase the number of rail shipments, significantly reducing their CO2 submissions.

Watch the interview with Iain Percival here:

[northernlass] 23/10/2012 03:46

REXAM'S SLIM CAN BOOSTS IDENTITY OF SOFT DRINK BRAND

Rexam Beverage Can has been chosen by SAAB Drink to produce the can for Meladaj, its new apple-based carbonated soft drink, which will be sold on the Italian market in bars, clubs and retail outlets.

Rexam worked with Enrico Giotti to create the 25cl Slim aluminium cans, produced at Rexam's Enzesfeld plant in Austria, which enhances the brand's fun personality and heightens the impact of its colourful design.

SAAB Drink worked with Rexam's Graphics Department to adapt Meladaj's vibrant design to the can printing process, which features a detailed apple drawing. The design is printed on a background of Rexam's Bright White ink, which gives the can a sophisticated and glossy feel whilst enhancing the intricate details of the drawing.

Aimed at young, witty and modern consumers, the name 'Meladaj' was specially chosen to target this market. The name uses the word "mela", meaning apple, together with the question "me la dai?", meaning "will you give it to me?", to create a fun brand that encourages people to drink together and socialise.

Angelo Schioppa, Owner of SAAB Drink, commented: "The Slim aluminium can is the perfect package for our product and really enhances the drinking experience. Meladaj is a relatively new brand, only entering the market in late 2011, but we are hoping to grow considerably in the next few years. The can that Rexam has helped us to create is appealing and helps to engage people's curiosity, and is a really integral part of our brand identity."

Monica Mantovani at Rexam Beverage Can, added: "It has been really interesting working with a new brand such as Meladaj, and helping them to develop such a key part of their brand. The cans look fantastic and we were delighted to help them get the best out of their great brand design."

Source:

[mechanical trader] 16/10/2012 08:48

REX REHAM

Nearing a breakout (again) and brokers
show still quite a bit left in this...

REXAM Broker Views
Date Broker Recommendation Price Old target price New target price Notes

08 Oct Credit Suisse Neutral 453.75 490.00 490.00 Reiterates
01 Oct Oriel Securities Buy 453.75 500.00 500.00 Reiterates
27 Sep Beaufort Buy 453.75 - - Reiterates
26 Sep Barclays Capital Overweight 453.75 - 550.00 Initiates/Starts
21 Sep Deutsche Bank Buy 453.75 480.00 480.00 Reiterates

[broadwood] 05/10/2012 12:52

Well, thats given us a nice bump.

It used to be a very nice yielder too until it hit the buffers a few years back. But its rebuilding that.

Long term holder here.

[wad collector] 05/10/2012 09:54

New 4yr high at 451 .Cannot see any news.Someone on Mottley reviewed yesterday ;
"
Today I'm evaluating Rexam (LSE: REX), one of the largest consumer packaging companies in the world, which currently trades at 438p. Here are my thoughts:
1. Financial strength: Since nearly losing its investment-grade credit rating three years ago, the company has strengthened its balance sheet, decreasing net debt for a third straight year down to £1.3bn, which is only 1.8 times EBITDA. Interest cover is ample at 8 times and free cash flow has been robust, averaging £300bn the last three years.
2. Profitability: Rexam had been a steady and consistent performer throughout most of the decade, growing revenues and earnings per share at modest rates of 5% and 4% per year, respectively. However, in 2009, due to a weak global economy and an expensive acquisition in 2007, the group reported losses of £29m. It had to cut dividends from 18p in 2008 to 8p in 2009 and launch a rights issue.
However, in the last three years, Rexam has increased earnings per share 19% and dividends per share 34% per year. Operating margin has expanded from 9% in 2009 to 12% in 2011, while return on capital employed (ROCE) has increased from 10% in 2009 to 14% in 2011.
3. Management: Investors are probably still wary of the significant share dilution from the rights issue in 2009, which increased shares from 720 million to 876 million. However, management appears to have gotten its act together post rights issue, it has reduced net debt and divested weak performing divisions such as the closures and personal care business and is instead focusing on the higher-margin health-care business, which offer more growth opportunities and the core beverage-packing business, which accounts for 80% of its revenues.
4. Long-term prospects: Rexam is one of three major producers of beverage cans in the world, which together supplies 60% of the global supply. It is the largest beverage can maker in Europe and South America and the second largest in the US. Its customers include top multinational companies such PepsiCo and Coca-Cola (NYSE: KO.US). Rexam has been increasing its presence in emerging markets with growing operations in Russia and Brazil and is the first global player in the Indian market. These countries now contribute over 30% of the company's total revenues. Furthermore, it has signed new deals and expects to regain most of the volume lost in North America in 2011 by 2013. The group expects a growth rate slightly above GDP in the next few years.
5. Valuation: Rexam's shares have increased 22% since January, and analysts forecast earnings per share of 36p for the year, giving the group an undemanding forward price-to-earnings (P/E) ratio of 12. It also returns an above-average dividend yield of 3.5%.
My verdict on Rexam
In the three years since the height of the financial crisis, Rexam seems to have regained its footing and is headed in the right direction. It has strengthened its financial position and streamlined its operations. It also boasts of a diversified portfolio of potential growth drivers, improving returns on capital and rising dividends.
So, overall, I believe Rexam at 438p looks like a buy."

[wad collector] 21/9/2012 13:34

£370M divided by 877M shares makes a special dividend of about 42p a share.Personally I would rather they did something more imaginative with the cash , like pay off some of their £1.5B of debt.If I wanted the money back I would sell some shares.That's why we buy shares ; because we think the company can use the money better than we can.

[stavros28] 21/9/2012 07:48

Money out of the company share price down just like a Ex Div move but if the City likes the deal they will not mark it down by the corresponding amount paid out.

Stavros

[pallett] 02/8/2012 11:34

Got in @ £4.21 yesterday, but how is the capital return going to affect the share price?

[redartbmud] 02/8/2012 11:01

I'll live with P/e 10.3 and 4.3% yield for now.

red

[wad collector] 02/8/2012 09:57

Looks like a pretty strong statement to me ; time to hold I reckon.

[broadwood] 01/8/2012 10:39

Rexam falls as half-year results disappoint

10.00: Rexam (REX.L) has bounced back a bit but is still the FTSE's biggest faller, down over 3% to 421p after its half-year profits came shy of some analysts forecasts.

Rexam has bounced back a bit but is still the FTSE's biggest faller, down over 3% to 421p after its half-year profits came shy of some analysts forecasts.
The company, which makes cans for Red Bull, Pepsi and Carlsberg, said pre-tax profits from continuing operations rose to £207 million in the first six months of the year, up from £204 million a year ago, on sales 3% higher at £2.17 billion.

Although drinks can sales rose 6%, sales at its healthcare business fell slightly as a result of there being fewer flu sufferers in the US and from one of its drug delivery devices going off patent.

The company delighted investors last month by announcing the sale of its underperforming personal care business for around £452 million, £370 million of which it will return to shareholders.

Sandy Morris of Jefferies said second half trading could be 'challenging' but maintained the broker's 'buy' rating on valuation grounds. Deducting the proposed 42p per share return of capital from the share price leaves the stock trading on around 10.3 times forecast earnings for 2013 and on a dividend yield of around 4.3%

[broadwood] 01/8/2012 07:27

Yep, its been a long wait but results today look satisfactory.

[wad collector] 30/7/2012 09:32

New 4 yr high this am ; they are back to being overweight in my portfolio too.
I think I want a bit more profit after waiting all these yrs.

[deanforester] 24/7/2012 23:27

An interesting situation developing. REX is not falling while all around are sinking fast.

At this rate, they will be overweight in my portfolio and ripe for trimming back.

DF

[wad collector] 19/7/2012 10:12

The brokers don't seem interested in Rexam - unfashionable manufacturer I suppose -when you can make big profits in manipulating quaternary industry share prices why bother with dull REX?
Suits me.

[broadwood] 03/7/2012 13:33

Good news the sale of Personal Care - and a payout to shareholders too in the form of B shares.

Price climbing.

[northernlass] 28/6/2012 15:45

What The Brokers Say

06 June 2012
Deutsche bank initiates coverage of Rexam with a Buy recommendation, setting a price target of 480.00

18 June 2012
Credit Suisse retains its Outperform rating on Rexam with a price target of 480.00

26 June 2012
Goldman Sachs retains its Neutral rating on Rexam with a price target of 500.00

Source:


P.S.

Here's a couple of links about SCLP, one of the hottest stocks at the moment:

[northernlass] 28/6/2012 15:43

Target For Warren Buffet?

AMERICANS TARGET BRITISH BUSINESSES

As well as being the world's biggest can-maker for food and drinks, Rexam also supplies plastic packaging to the health-care, pharmaceutical, personal care, and household care markets. When I last reviewed Rexam's results in February 2011, I gave this dull company a big thumbs-up.

With a market value of 3.6 billion pounds, I believe this FTSE 100 firm would be an ideal meal for Berkshire Hathaway, investing genius Warren Buffett's conglomerate. Buffett loves market leaders in boring businesses (he has bought brick, carpet, and roofing companies), so I'm certain Rexam would be an ideal piece to add to Buffett's jigsaw.

Source:

[wad collector] 15/5/2012 19:12

Forgot all about the results ;
3 May 2012

Rexam PLC, the global consumer packaging company, today issues its interim management statement for the period from 1 January 2012.

Results for the Group are in line with our expectations, and our financial position is largely unchanged from that at 31 December 2011.

Performance in Beverage Cans is in line with our plans. Volumes in our European business were driven by good growth in Western Europe and specialty cans partly offset by Russia where we saw a strong performance in the first quarter of last year. In North America we saw continued good performance in specialty cans and the expected recovery of some of the standard can volumes lost in 2011, while the business in South America showed slight year on year volume growth.

Our Healthcare business is trading as expected, slightly below the equivalent period in 2011 primarily as a result of a product coming off patent, as previously indicated, and a weak flu season.

The process to divest the Personal Care business is progressing according to plan.

Graham Chipchase, Rexam's Chief Executive said: "Trading so far this year has been as anticipated and overall performance is in line with our expectations. It is still early in the year and the busy summer season traditionally influences our full year results. The global economic outlook remains uncertain but, at this stage, we continue to expect 2012 to be another year of progress as we maintain our focus on cash, costs, and return on capital employed."


Meanwhile the share price has dipped back below £4 , in line with most of the market roughly.

[wad collector] 02/5/2012 09:01

Climbing ahead of results is usually a promising sign , moving to a new 4 year high this morning.

[broadwood] 02/5/2012 08:37

Results tomorrow.

[broadwood] 30/4/2012 09:00

Reporting this week.