News: UPDATE 1-Australia's Brambles forecasts flat FY underlying profit

(Recasts, adds background and CEO quote)

SYDNEY, Feb 20 (Reuters) - Australian pallets and container group Brambles Ltd on Monday forecast it would report a flat full-year underlying profit after posting a 3 percent rise in first-half underlying profit amid increased competition in its North American business.

The company, which surprised the market with a profit downgrade on Jan. 23, said CEO-designate Graham Chipchase would take over from outgoing boss Tom Gorman on Monday, a week earlier than expected.

Brambles reported an underlying profit of $468.9 million for the six months ended Dec. 31, which, adjusted for currency changes, was in line with its latest guidance for a 3 percent rise in underlying profit on a constant-currency basis. On a statutory basis, profit after tax fell 44 percent to $162.3 million.

The guidance for a flat full-year underlying profit in the 12 months ended June 30 was well below the range of 9 to 11 percent offered before a surprise downgrade on Jan. 23.

Brambles had attributed the downgrade in part to destocking by U.S. retailers that impacted volumes, but analysts highlighted a lack of corresponding data from retailers who use the pallets for transportation in warehouses.

"Our first-half performance in Pallets North America was disappointing," Gorman said in a statement on Monday, citing higher costs and increased competition.

Brambles declared an interim dividend of A$0.145 per share, steady with its payout a year ago.