Pallet supplier announces slump in profits due mostly to its sale of Cleanaway a year ago
February 18, 2010
Pallet supplier Brambles has announced a 2.7 percent profit slump for the first half of the financial year blamed mostly on its sale of Cleanaway a year ago.
The company also says it is battling subdued business conditions in its US market and in the UK and Spain.
Net income for the last six months was $207.1 million compared with a $212.8 million at the same time in 2009.
But the company is remaining confident and says there are positives to take out of the results.
“The board is confident in Brambles’ long term outlook for profitable growth,” CEO Tom Gorman says.
“Most of our sales continued to grow sales revenue in the half including established CHEP markets such as Australia, Canada and South Africa and less mature CHEP markets such as Italy, Central and Eastern Europe and Latin America.”
He says CHEP’s reusable plastic containers also delivered solid growth.
“All Brambles business units except CHEP Americas had net business wins during the period,” Gorman says.
Expansion is also not out of the question, with Gorman saying CHEP is an outstanding business model with a strong customer base and prospects for long-term profitable growth.