bil to goto 13.26 after this

Brambles predicts strong profit for FY06
11/11/05 By: Phoebe Ash

Brambles Limited (BIL) today announced at their annual general meeting the company expected solid profit performance for the year ahead. Chairman Mr Don Argus said sales and profits are well ahead of the comparative period in the prior year for Q1 and the company expected further good progress in profit and solid cash generation in the year ahead.



The largest business within the Group, CHEP said after solid performance last year they expected to deliver good growth in all regions in 2006, driven by continued sales growth and continuing benefits from operational improvements.

In Q1 CHEP reported American sales had increased 10% from the pcp and profits continued to gain from on-going efficiency improvements. Furthermore, the company said CHEP Europe sales had also grown for the three months to September by 5%.

CEO Mr David Turner said the divestment of Cleanaway Germany is expected to be completed by early next year, subject to approval from the relevant competition authorities in Europe and was showing improvements in the UK in its Commercial and Industrial business.

The company said in the three months to September, performance in Brambles Industrial Services and Regional Businesses is ahead of the prior comparative period.

The company explained they planned to improve their safety performance and would aim to achieve zero harm in regards to injuries and environmental damage.

The business also reported it has A$2.2 billion in contracted sales and expected high contract renewal rates and a consistent cash flow.

Mr Turner explained the company would continue to focus on creating value and maintain a disciplined approach to the management of capital expenditure and working capital and predicted further solid cash generation for the year ahead.

Furthermore, the company predicted they would achieve higher levels of customer satisfaction through the use of Brambles Value Added, Six Sigma.