brambles profit down 44%

Feb. 25 (Bloomberg) -- Brambles Industries Ltd., the world's largest supplier of storage pallets, said first half profit slumped 44 percent, dragged down by its CHEP unit

Net income in the six months to Dec. 31 fell to A$138 million ($108 million), or 8 cents a share, from A$248 million, or 15 cents a year earlier, Sydney-based Brambles told the Australian Stock Exchange. Sales fell to A$3.76 billion from A$4.19 billion.

Operating profit at the CHEP pallet rental unit fell 21 percent to A$223 million from A$293 million a year earlier, the company said.

Brambles flagged the decline in earnings in September, when the company said first-half trading profit would fall from a year ago before a ``better performance'' in the second-half. The company today said the outlook hasn't changed.

``Although trading for the first half was weaker than the prior year, we expect a better performance in the second half, leading to good progress for the year as a whole,'' the company said.

Brambles shares rose 7 cents to A$5.62 at the 4 p.m. close of trading in Sydney. The profit slide was reported after the market closed. The stock has gained 22 percent the past three months. In 2002, the stock slumped 55 percent after the company said at least three times that earnings would fall short of forecasts.