Weak euro, high polymer prices weigh on packaging-maker RPC

RPC, which makes plastic containers, jars and bottles for brands such as Nescafe and Heinz, said its immediate outlook was hampered by the continuing lack of growth in Europe.

Adjusted pretax profit fell to 76.3 million pounds ($116.7 million) for the year ended March 31, from 80.3 million pounds a year earlier.

Revenue decreased 7 percent to 1.05 billion pounds.

Analysts on average were expecting pretax profit of 76.8 million pounds and revenue of 1.05 billion pounds according to Thomson Reuters I/B/E/S.

The company said in March it would report a slightly lower full-year operating profit due to higher polymer prices and the euro's weakness against the pound.

RPC, which generates more than three-quarters of its revenue from Europe, said earnings were lower by 4 million pounds hurt by a weaker euro. The euro had been weaker for most of the past twelve months.

RPC said profit was also hurt by the time lag in passing on higher polymer prices to its customers.

The company raised its final dividend to 10.6 pence per share from 10.2 pence a year earlier.