Healtcare business worries weigh on Rexam
(Reuters) - Beverage can maker Rexam Plc (REX.L) said its healthcare business performed below expectations as its pharma division lost some business in animal health.
The healthcare business, which contributes about 10 percent of the company's total sales, makes precision medical devices such as bronchial inhalers, injection syringes and tubes.
Rexam, whose cans are used by companies such as PepsiCo Inc (PEP.N), Red Bull GmbH and Carlsberg A/S (CARLb.CO), however reported a 6 percent rise in global sales volumes at its beverage can business.
"The 3Q IMS appears broadly in line with expectations other than for Healthcare, whose performance has weakened," Jefferies analyst Sandy Morris wrote in a note.
The company also said the divestment of its personal care business was in its final stages.
"We are on track to return 370 million pounds ($586.36 million)of the proceeds to shareholders," Chief Executive Graham Chipchase said.
Rexam said in July that it would sell its underperforming personal care business in two parts for $709 million in cash.
Shares in Rexam were down 1.4 percent at 435 pence at 0358 EDT on the London Stock Exchange on Thursday.
($1 = 0.6310 British pounds)
(Reporting By Shilpa Hinduja in Bangalore; Editing by Joyjeet Das)