RPC Group's net profit down 47% year-over-year to £13.9M in six months ended Sept. 30, hurt by £18.5M in restructuring costs, impairment losses, exceptional items; sales down 12% to £518M amid weaker euro, 3% drop in volumes

NORTHAMPTONSHIRE, United Kingdom , November 29, 2012 (press release) – RPC Group Plc, Europe’s leading supplier of rigid plastic packaging, announces today its half year results for the six months ended 30 September 2012.

Highlights:
• Adjusted operating profit up 4% at £47.0m (2011: £45.4m) with the return on sales improving to 9.1% (2011: 7.7%)
• Sales lower at £518m (2011: £587m) reflecting the impact of a weaker euro with overall volumes 3% down on last year albeit with an improved sales mix
• Adjusted EPS at 18.4p (2011: 18.3p)
• Net profit for the period lower at £13.9m (2011: £26.3m) after incurring £18.5m
(2011: £4.1m) of restructuring costs, impairment losses and other exceptional
items.
• Good cash flow performance with net cash generated from operations at
£42.5m (2011: £30.9m)
• ROCE for the period improved to 19.3% (2011: 18.2%) • Superfos integration and exit from mainland Europe vending cup and
automotive businesses successfully completed
• New business optimisation programme ‘Fitter for the Future’ launched
• Manuplastics business acquired enhancing the sale and manufacturing base for
personal care in the UK
• Interim dividend of 4.3p (2011: 4.2p)

Commenting on the results, Jamie Pike, Chairman said:

“This was another creditable performance by the Group in a continually challenging economic environment. The ROCE target set following the Superfos acquisition has been largely achieved but with the prospect of prolonged macro-economic weakness the Group has embarked on the ‘Fitter for the Future’ optimisation programme to ensure that this level of performance can be sustained. Opportunities to grow the business from a position of financial strength through innovation and acquisitions continue to be explored.”

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