Rexam says Q1 as expected, outlook unchanged

LONDON (Reuters) - Rexam Plc (REX.L: Quote, Profile, Research), the world's biggest drinks can maker, said its full-year trading outlook was unchanged as it said on Thursday first-quarter results were in line with its expectations, based on constant currency rates.

Rexam, like other British companies with hefty international sales, also said sterling's recent weakening would boost its bottom line when overseas profit were converted into pounds.

"Rexam has made a good start to the year and we are particularly pleased with our beverage can growth in Europe," Rexam said in a statement ahead of its annual investor meeting.

"Plastic packaging is performing as expected. Our trading outlook for 2008 remains unchanged."

At 0840 GMT, Rexam shares were up 2.4 percent at a 10 week high of 458.5 pence, to value the company at 2.83 billion pounds ($5.6 billion).

Citi analysts, who rate Rexam stock a "hold" with a 440p target, said: "The overall tone is solid and foreign exchange help should see a slight upward movement in consensus pretax profit estimates."

Rexam said foreign exchange translation would benefit its profit before tax for the year by approximately 20 million pounds versus 2007 if currency rates remain at current levels for the remainder of 2008.

(Reporting by Dan Lalor and Mark Potter; Editing by David Holmes)