On July 4, Zacks Investment Research downgraded
) to a Zacks Rank #5 (Strong Sell).
Rexam plc's earnings estimates and share price witnessed a
downward trend following its announcements on Jun 25 that its
interim as well as full year 2013 results would be lower than
previously expected as well as the intention to sell its
The global consumer packaging company noted that beverage can
volume growth has been slower than expected this year mainly due
to the weather. Even though North America has held up, volumes
have been weak in South America and Western Europe in April and
May. For the five months till the end of May, global volumes
edged up 1% compared with the prior-year period. The company
expects operating profit to decline year-over-year in the first
half of fiscal 2013.
Rexam expects full-year performance to be lower than previously
anticipated. As a reminder, the company during its announcement
of interim results ended Jan 2013 on Apr 18 had mentioned a
target of achieving 15% return on capital employed for fiscal
However, volumes have shown some improvement in Brazil in June
and the second half should benefit from increased cost reductions
and certain contractual price/volume arrangements in Europe.
Over the last 30 days, the Zacks Consensus Estimate for fiscal
2013 decreased 6% to $2.99 per share and for fiscal 2014 it went
down 4% to $3.26 per share.
Other Stocks to Consider
Not all stocks in the paper and related products industry are
performing as poorly as Rexam plc.
KapStone Paper and Packaging Corporation
), with a Zacks Rank #1(Strong Buy), and
), carrying a Zacks Rank #2 (Buy), are some stocks worth
KAPSTONE PAPER (KS): Free Stock Analysis
REXAM PLC-ADR (REXMY): Get Free Report
ROCK-TENN CO (RKT): Free Stock Analysis
DOMTAR CORP (UFS): Free Stock Analysis Report
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