next takeover target, page-2

takeover bil the next target? I think that the more it drops the more likely GE will take it.

Has a gap in the graph now that will have to be close, the results are not that bad...

Dividend 10c coming soon ex.... fully franked...


From www.egoli.com.au




Brambles "in line" result
2/09/03 By: Sarah Richards

Brambles Industries Limited (BIL) today claimed its troubled CHEP pallets business was on a "sustainable growth path" despite the company posting a 40% drop in full year net profit to $330 million.

Brambles reported a profit before tax, goodwill amortisation and significant items of $775 million, in line with its guidance given in June. Profit after tax but before goodwill amortisation and significant items was $531 million.

Revenue, including sales revenue of associates, fell 7.7% to $8.1 billion, while revenue from continuing businesses grew 6% to $7.9 billion.

Brambles claimed CHEP had revenue growth opportunities in each of its markets around the world. However, the company warned that further writedowns from its pallets business may be needed.

"It is possible that, as the audits progress, further pallets may prove to be unviable to collect and repair and will need to be written off," said Brambles in a statement to the ASX.

The company claimed that its estimated program cost of $126 million should be sufficient to cover that possibility.

Brambles said there had been a relocation of 2.4 million pallets held in CHEP Europe's own service centre network. It also advised that 1.1 million pallets had been added back to its manufacturer customers’ holdings, with associated revenue improvements.

"Shortfalls at other customers have led to compensation receipts expected in respect of another one million pallets," claimed Brambles.


Moreover, the company advised that provisions had been made in relation to a further four million pallets that were thought during the audit process not to be recoverable.

Looking at its CHEP America business, Brambles forecast its costs would increase in the short term due to initiatives introduced to optimise the company’s new service centre there.

"While profits in the Americas in the first half of the current year are unlikely to exceed those in the second half of last year, they should rebound in the second half driven by lower costs and continuing revenue growth."

Turning to its Europe operations, Brambles expects trading to improve as benefits are realised from its restructuring program. Elsewhere, the company said its Cleanaway business would be affected by the one-off event of DSD rendering.

"The group's Recall and Brambles Industrial Services should continue to perform steadily," added Brambles.

Overall, Brambles forecast the first half in the coming year to weaker than last year but expect a better performance in the second half, "leading to improved cash flow and good progress for the year as a whole."

The board declared a steady final fully franked dividend of 10c a share.

SHAW Stockbroking’s Brent Mitchell said the result was in line with expectations, however there was a possibility of further writedowns.