Packaging firm vows to overcome cost pressures

The world’s biggest drinks can maker has vowed to return to profits growth in 2008 after a weak dollar and high raw material costs dented annual earnings.

Rexam, which makes more than 54bn cans a year for drinks such as Pepsi and Red Bull, said underlying pre-tax profits for 2007 fell 7% to £245m (€324m).

The London-based company admitted 2007 was “more testing than expected” due to the continuing high price of aluminium, energy and other input prices.

These factors, alongside a strike at nine US can-making factories and a delay starting up a Brazilian plant, all contributed to the profits fall which was in line with market expectations.