Pallet growth gives Brambles a lift
Pallet supplier Brambles says it is on track to achieve its full year financial guidance after an improved first quarter sales performance.
Brambles this morning said its sales revenue in the three months to September 30 was $US1.425 billion ($A1.40 billion), up three per cent from the same period in the previous year.
Revenue growth was a result of new business growth in the company's provision of reusable pallets, crates and containers, Brambles said.
"Subject to unforeseen events and ongoing economic uncertainty, we remain on track to deliver our guidance for the 2013 financial year ... at 30 June 2012 foreign exchange rates," chief executive Tom Gorman said in a statement.
Brambles has forecast a full year underlying profit of between $US1.01 billion and $US1.07 billion.
Mr Gorman said first quarter revenue growth was strongest in Brambles’ pallets business in the United States, up 10 per cent from the previous corresponding period.
Revenue in the pallets business in the Asia Pacific region rose by six per cent. But in Europe, the Middle East and Africa, weak economic conditions resulted in a drop in revenue of three per cent, he said.
In Brambles’ data management business Recall, new business wins and pricing growth were not enough to offset the impact of lower paper prices and reduced activity in document destruction, Mr Gorman said.
Brambles is scheduled to hold its annual general meeting in Sydney later today.