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Wednesday 26 February, 2003

Brambles Industries

Interim Results Part 2

Brambles Industries PLC
26 February 2003

PART 2


                              Brambles Industries



                       Interim Results for the six months



                              to 31 December 2002





                         For the Combined Businesses of

                            Brambles Industries plc

                        and Brambles Industries Limited








                                       4







BRAMBLES INDUSTRIES



INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2002



CONTENTS


                                                                                                       Page
Summary of the Combined Results
Financial Highlights                                                                                      6
Overview                                                                                                  8
Operational Review                                                                                       10
Outlook                                                                                                  19


Brambles Industries Group
Combined Financial Information
Combined Profit and Loss Account                                                                         20
Combined Balance Sheet                                                                                   21
Combined Statement of Total Recognised Gains and Losses                                                  22
Reconciliation of Movements in Combined Shareholders' Funds                                              22
Combined Cash Flow Statement                                                                             23
Combined Segmental Analysis                                                                              25
Notes to the Combined Financial Information                                                              27
GAAP Reconciliation                                                                                      29


Brambles Industries plc
Consolidated Profit and Loss Account                                                                     32
Consolidated Balance Sheet                                                                               33
Consolidated Statement of Total Recognised Gains and Losses                                              34
Consolidated Cash Flow Statement                                                                         34
Notes to the Brambles Industries plc Financial Information                                               35


Independent Review Report                                                                                36



An analyst briefing will be held in London at 9am on 26 February 2003. This will
be webcast and available with supporting slides on our website www.brambles.com.



                                       5

Brambles Industries



Summary of combined results for the six months ended 31 December 2002


                                                               Six months        Six months
                                                                    ended             ended        Increase/
                                                               31/12/2002      31/12/2001 *       (Decrease)
                                                               £ millions        £ millions                %

Results before exceptional items and goodwill amortisation

Continuing businesses
Revenue, including associates                                      1,453             1,407               3%
Comparable operating profit *                                        182               170               7%

Group
Revenue, including associates                                      1,474             1,619              (9%)
Profit before tax                                                    142               137               4%
Profit after tax                                                      97               102              (5%)
Earnings per share                                                  5.7p              6.0p              (5%)


Group results after exceptional items and goodwill amortisation

Profit before tax                                                    137                34
Profit after tax                                                      90                16
Earnings per share                                                  5.3p              0.9p

Interim dividend per share                                         3.757p           3.590p
Interim dividend per share payable                                           10 April 2003
Dividend record date                                                        21 March 2003

Net debt                                                           1,688             1,872




•       The performance of Brambles in the first six months of the financial
year is in line with our expectations, following the trading statement in
November 2002.



•       CHEP's overall comparable operating profits, excluding the one-off
accounting harmonisation charge last year and in constant currency, were 7%
lower than the same period last year.



•       CHEP USA comparable operating profit improvement programme is
continuing to be executed effectively with profits for CHEP Americas up by 33%.
CHEP Europe comparable operating profits were down by 32%.  Implementation of
the restructuring plan is underway.



•       Cleanaway performed steadily in a challenging environment with
comparable operating profits slightly lower than last year.  Recall continues to
grow revenue and profits due to both organic and acquisition growth.



•       Industrial Services had an improved profit performance though in our
Regional Businesses, Interlake profits were lower.



•       Operating cash flows improved compared with the same period last year.



•       Assuming continued global political and economic stability, the
outlook for the Group for the financial year is unchanged since our AGM and
trading statements in November 2002, with good growth in CHEP Americas and the
Rest of the World, and lower comparable operating profits from CHEP Europe.
Cleanaway continues to face a challenging market in Europe.  Recall should
continue to grow.  There will be a continued focus on improving the cash
performance of the Group.



                                       6


* Note:



•       The results for the six months ended 31 December 2001 included a
one-off charge of £31million (£19million after tax) in respect of accounting
harmonisations in CHEP (note 5 in the financial statements).



•       Throughout this business commentary, all references to comparable
operating profits are to 'operating profit before exceptional items and goodwill
amortisation'. Measures of business performance have been calculated in constant
currency (at the previous half year's average exchange rates).



•       In the statutory financial statements, foreign currency results have
been translated at the average exchange rates ruling in each period.



The table below summarises the results at actual and average exchange rates for
the previous half year.  The results for the six months to 31 December 2001 are
reflected after the impact of the harmonisation of accounting in CHEP.  The net
negative impact of the harmonisation was £23million and included a one-off
charge of £31million (see note 5 of the financial statements)




Turnover                                          Six months             Six months         Six months          %
(including associates)                                 ended                  ended              ended     Change
By Business                                       31/12/2002             31/12/2002         31/12/2001
£ million                                        As reported             At average
                                                                     exchange rates
                                                                  for previous half
                                                                               Year

                                                                                (a)                (b)    (a)/(b)
CHEP                                                    620                    646                591          9
Cleanaway                                               505                    501                478          5
Recall                                                  118                    125                107         17
Industrial Services                                     137                    137                134          2
Regional Businesses                                      73                     78                 97        (20)
Discontinued                                             21                     21                212          -
Total                                                 1,474                  1,508              1,619         (7)


Comparable                                        Six months             Six months         Six months          %
operating profit                                       ended                  ended              ended     Change
(UK GAAP EBITA                                    31/12/2002             31/12/2002         31/12/2001
before exceptionals)                             As reported             At average
By Business                                                          exchange rates
£ million                                                         for previous half
                                                                               year
                                                                                (a)                (b)    (a)/(b)
CHEP                                                    103                    107                 84         27
Cleanaway                                                50                     49                 51         (4)
Recall                                                   19                     21                 18         17
Industrial Services                                      13                     13                 12          8
Regional Businesses                                       6                      6                  9        (33)
Discontinued                                              2                      1                 19          -
Unallocated                                              (9)                   (10)                (4)         -
Total                                                   184                    187                189         (1)





The prior period results set out in column (b) above reflect the adjustments
described in the Group's LSE announcement dated 19 February 2003.



The Group's profit before interest and tax, after charging goodwill amortisation
and exceptional items, is analysed by business segment and geographical origin
on page 25.





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                      This information is provided by RNS
            The company news service from the London Stock Exchange
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