Brambles Industries PLC
29 June 2006
Brambles Industries plc
Company Number: 4134697
29 June 2006
BRAMBLES REAFFIRMS POSITIVE OUTLOOK
FOR FULL YEAR ENDING 30 JUNE 2006
Brambles' outlook for the year ending 30 June 2006 remains unchanged. The
company expects good progress in profit and solid cash generation for the full
• CHEP is performing well in all regions and, in particular, CHEP Americas
has continued the very strong performance achieved in the first half of
• Recall's performance in the second half has improved, with stronger
sales growth and higher profits expected.
• Brambles is making good progress on its business divestment programme
and is in the final stages of the process to sell Cleanaway UK.
• The total proceeds of Brambles' divestments to date - Cleanaway
Australia and New Zealand, Industrial Services Australia, Cleanaway
Germany, Brambles Industrial Services Northern Hemisphere and the Regional
Businesses - is US$2.44 billion.
• The businesses being sold continued to perform well in the second half.
•Cash flow generation for the full year is again expected to be strong.
CHEP Americas' profit growth is expected to be very strong for the full year
with sales for the eleven months to the end of May approximately 10% higher than
the prior corresponding period. In the USA, CHEP continues to benefit from
significant operational efficiencies and increased market penetration. Latin
America is performing strongly with sales growth for the full year expected to
CHEP Europe's profit growth is expected to remain strong for the full year with
5% sales growth for the eleven months to May. Operational efficiencies, coupled
with benefits from the implementation of pricing initiatives, continue to
deliver steady improvement.
CHEP in the rest of the world is delivering solid sales and profit growth.
Recall grew sales by 10% in the eleven months to May, including the benefit of
AUSDOC which was acquired in December 2005. Excluding AUSDOC, the underlying
sales growth for the period to May was 4%, with an improved performance in North
America compared to the first six months.
Profits in the second half are expected to be higher than the first six months
due to a good performance in Europe, a full six-month contribution by AUSDOC and
improved performance in North America.
Since the decision to focus on CHEP and Recall in November 2005, most of the
other businesses have been sold. The Discontinued operations performed well in
the first half and have continued to do so in the second half.
CASH FLOW FROM OPERATIONS
Cash flow from operations remains strong. Overall capital expenditure for the
full year is expected to be similar to last year with an increase in Continuing
operations reflecting investment in CHEP's 'Perfect Plant' initiatives and
strong growth in CHEP Americas.
The results for Brambles for the year ending 30 June 2006 will be released on 23
August 2006 prior to the opening of trading on the Australian Stock Exchange.
Brambles remains on track to complete the unification of the dual listed
companies structure at the end of November 2006.
The Information Memorandum in relation to the unification proposal is expected
to be sent to shareholders in late September. No action is required by
shareholders until they receive this document.
(a) On 29 November 2005, Brambles announced that it intended to
focus on CHEP and Recall and divest Cleanaway, Brambles Industrial Services
and the Regional Businesses. From that date these businesses are reported
for accounting purposes as discontinued operations.
(b) References to profit are to profit before finance costs, tax and special
items as defined under IFRS.
(c) US$ figures are presented in IFRS and quoted at actual exchange rates.
(d) 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 John Hobson, Head of Investor Relations +61 (0)2 9256 5216
+61 (0)414 239 188
Media David Besier, Manager Corporate +61 (0)2 9256 5204
+61 (0)412 473 330
Investor Sue Scholes, Head of Investor Relations +44 (0)20 7659 6012
Media Richard Mountain, Financial Dynamics +44 (0)20 7269 7291
Brambles is globally headquartered in Australia
This information is provided by RNS
The company news service from the London Stock Exchange