Brambles Industries PLC
22 June 2005
BRAMBLES INDUSTRIES PLC
Company number: 4134697
22 June 2005
BRAMBLES REAFFIRMS OUTLOOK
FOR FULL YEAR ENDING 30 JUNE 2005
Brambles outlook for the year ending 30 June 2005 remains unchanged. The company
expects good progress in both profit and cash generation for the full year.
• CHEP continues to perform well in all regions.
• Cleanaway's profit in the second half is expected to be higher than in
the first half although, as previously communicated, full year profit is
expected to be lower than last year.
• Recall is expected to generate higher sales and profit for the full
year, with Europe recovering well.
• Brambles Industrial Services is expected to have solid profit growth for
the full year, with Regional Businesses also generating higher profits.
•Cash flow generation remains strong and full-year performance is again
expected to be good.
CHEP Americas' profit growth is expected to be very strong for the full year
with sales growth for the eleven months to the end of May over 10% higher. In
the USA, CHEP continues to gain new customers and improve operational
efficiencies. Latin America is also delivering strong growth.
CHEP Europe's profit growth is expected to remain strong for the full year with
sales growth for the eleven months to May over 6% higher. The implementation of
pricing initiatives, to more appropriately reflect the cost to serve each of the
customer segments, remains on track.
CHEP in the rest of the world continues to deliver solid sales and profit
Cleanaway in the second half is showing an improved performance over the first
half but, as expected, profitability for the year as a whole will be lower than
in 2004. Sales for the eleven months to May increased 5%, with growth in each
In the UK, profitability in the second half is benefiting from the
non-recurrence of one-off restructuring costs and from operational and pricing
initiatives in the Commercial & Industrial segment.
In Germany, the impact on full year profits of the DSD contracts which commenced
on 1 January 2005 will be almost entirely offset by better performance in other
segments, notably in improving margins in the Commercial & Industrial segment.
Sales growth in Recall in the eleven months to May was over 8% and profits are
expected to increase for the full year, with Europe recovering well.
In the USA, results are being affected by fluctuating paper prices and the
continued competitiveness of the Secure Destruction market.
BRAMBLES INDUSTRIAL SERVICES
Brambles Industrial Services is expected to achieve steady profit growth for the
year and additional contract wins should underpin future earnings growth. Sales
grew 6% in the eleven months to May 2005. Regional Businesses are expected to
show good growth for the year, led by Interlake.
OPERATING CASH FLOW
Operating cash flow continues to be strong, although capital expenditure for the
full year will be higher than last year, underpinning the strong growth in CHEP
USA and investment in new contract wins for Brambles Industrial Services.
The results for Brambles for the year ending 30 June 2005 will be released on 24
(a) References to profit are to profit before interest, tax,
goodwill amortisation and exceptional items as defined under UK GAAP.
(b) Relative sales 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
previous year. Relative operating cash flow performance is based on exchange
rates applicable during each year.
For further information, contact:
Investor Sue Scholes, Head of Investor +44 (0) 20 7659 6012
Media Richard Mountain, Financial Dynamics +44 (0) 20 7269 7291
Investor John Hobson, Head of Investor +61 (0) 2 9256 5216
Mobile +61 (0) 414 239
Media Michael Sharp, +61 (0) 2 9256 5255
Vice President, Corporate Affairs Mobile +61 (0) 439 470 145
Brambles' global headquarters are in Sydney, Australia
This information is provided by RNS
The company news service from the London Stock Exchange