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Brambles Industries (BI.)

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Wednesday 26 May, 2004

Brambles Industries

Trading Statement

Brambles Industries PLC
26 May 2004



26 May 2004

                           BRAMBLES REAFFIRMS OUTLOOK
                       FOR FULL YEAR ENDING 30 JUNE 2004

Brambles' outlook for the year ended 30 June 2004 remains unchanged from the
Interim Results' statement on 25 February 2004.

KEY POINTS

   •CHEP is expected to deliver strong growth in profit in the second half of
    2004 (compared with both first half 2004 and second half 2003) due to good
    performance in all regions.


   •Cleanaway's profit in the second half of 2004 is expected to be better
    than the first half, due mainly to stronger results in the UK operations
    more than offsetting lower profits in Germany.


   •Recall's profit for the second half of 2004 is also expected to be better
    than the first half, but the full year will be approximately 7% lower than
    last year mainly due to pricing pressures in Europe.


   •Brambles Industrial Services continues to perform well and is expected to
    generate solid profit growth for the full year 2004. Regional Businesses are
    expected to show good improvement in profit in the second half 2004 over the
    first half.


   •The continuing focus on Brambles Value Added (BVA) is expected to result
    in a strong operating cash flow after capital expenditure for the full year.

CHEP

CHEP Americas is expected to achieve strong growth in profit for the second half
due to sales growth, a continuing focus on cost reductions and non recurrence of
one-off costs incurred in the first half.

Sales in CHEP Europe are growing, the business is continuing to make good
progress in restructuring its operations and is expected to have solid growth in
profit in the second half. Pricing initiatives are being implemented to ensure
that CHEP is more appropriately reflecting the cost to serve each of the
customer segments. These are progressing well and will continue for the
remainder of the calendar year. The two new regional administration centres in
the UK and Spain are now operational.

CHEP in the rest of the world is expected to continue to deliver good sales and
profit growth.

CLEANAWAY

As expected, Cleanaway UK is performing well in the second half and profit
growth (compared with the first half) is expected to be strong, more than
offsetting the impact of lower second half profits in Germany mainly due to the
outcome of retenders.

The restructuring of the UK Commercial & Industrial business together with
improved pricing are contributing to the stronger second half in that market.
The Municipal business in the UK is also continuing to grow.

RECALL

Recall continues to grow revenue, and although profits in the second half are
expected to be stronger than the first half, profits for the full year will be
approximately 7% lower than last year mainly due to performance in Europe.

In North America, full year revenue and profits are expected to grow, with
margins in line with last year.

In Europe, profits are expected to be lower than last year principally due to
ongoing pricing pressures in the UK and in part due to the receipt last year of
an insurance payment associated with the fire in France in 2002.

In the rest of the world Recall is continuing to grow.

A focus on operating efficiencies and customer service across Europe and North
America is expected to lead to a resumption of Recall's profit growth in 2005.

BRAMBLES INDUSTRIAL SERVICES

Brambles Industrial Services continues to win additional contracts in both its
Australian and Northern Hemisphere businesses and is expected to generate solid
profit growth for the full year.

OPERATING CASH FLOW

The continuing focus on BVA is expected to result in a strong operating cash
flow after capital expenditure for the full year. Capital expenditure for the
group is expected to be below last year.

The results for Brambles for the year ending 30 June 2004 will be released on 31
August 2004.

Notes:

(a)  Profit is defined as profit before interest, tax, goodwill amortisation and
     exceptional items.
(b)  Relative revenue and profit performances in this statement are based on
     constant currency
     comparisons. Constant currency is calculated by translating foreign
     currency results at the
     exchange rates applicable during the last year. Relative operating cash
     flow performance is
     based on the exchange rates applicable during each year.


             Brambles' global headquarters are in Sydney, Australia

For further information, contact:
UK
Investor    Sue Scholes, Head of Investor Relations  +44 (0) 20 7659 6012
Media       Richard Mountain, Financial Dynamics     +44 (0) 20 7269 7291

Australia
Investor    John Hobson, Head of Investor Relations  +61 (0) 2 9256 5216
                                                     Mobile +61 (0) 414 239 188
                                                        
Media       Jeannette McLoughlin,                    +61 (0) 2 9256 5255
            Group General Manager, Corporate         Mobile +61 (0) 401 990 425
            Communications                              

                 Brambles' global headquarters is in Australia




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