BXB Brambles

 

TIDMBXB 
 
RNS Number : 7513C 
Brambles Limited 
19 November 2009 
 

Brambles Limited 
Company Number: 118 896 021 
 
 
 
 
19 November 2009 
 
 
 
 
BRAMBLES LIMITED: 2009 AGM TRADING UPDATE 
AND INTERIM MANAGEMENT STATEMENT 
 
 
Due to the fact that it retains a secondary listing on the London Stock 
Exchange, Brambles Limited is required under the UK Disclosure Rules and 
Transparency Rules to publish an Interim Management Statement (IMS) for the 
period from the beginning of the current financial year (1 July 2009) to 31 
October 2009. 
 
 
Attached is the IMS required by those rules. The IMS also constitutes Brambles' 
2009 AGM trading update. 
 
 
 
 
 
 
Robert Gerrard 
Group Company Secretary 
 
 
 
 
 
 
BRAMBLES WELL-PLACED FOR ECONOMIC RECOVERY 
 BUT SHORT-TERM CHALLENGES REMAIN 
IN USA 
 
 
Brambles today reported group sales revenue for the four months to 
31 October 2009 of US$1,402 million, 3 per cent lower1 than the prior 
corresponding period. Brambles Chairman Graham Kraehe said the Company's CHEP 
and Recall businesses were in a strong position to benefit from improvement in 
economic conditions. 
 
 
Mr Kraehe said both CHEP and Recall were performing solidly and continue to 
generate net new business wins2 in all regions, with the exception of CHEP USA, 
which experienced sales revenue below expectations over the four-month period. 
 
 
Mr Kraehe told Brambles' annual general meeting (AGM) in Melbourne: "We have 
considerable leverage to a broad-based return to economic growth when it occurs. 
However we are yet to witness a widespread pick-up in activity or restocking in 
our major markets." 
 
 
Brambles Chief Executive Officer Tom Gorman told the AGM: "I believe strongly in 
our businesses. We have outstanding market positions, financial strength and 
growth potential. Although short-term trading conditions remain somewhat subdued 
in our largest markets, we are very well-placed to benefit from global economic 
recovery." 
 
 
Making comparisons with the prior corresponding period was challenging as most 
of the prior corresponding period occurred before the escalation of the 
Global Financial Crisis. In line with the broader economic trend, Brambles 
experienced business conditions in the four months to 31 October 2009 similar to 
those of the second half of the 2009 financial year. 
 
 
CHEP's revenue for the period was down 3 per cent on the prior corresponding 
period to US$1,154 million, primarily reflecting CHEP Americas' revenue decline 
of 5 per cent to US$513 million. The decline in CHEP Americas' revenue was due 
to CHEP USA, which had lower organic volumes as a result of prevailing economic 
conditions and had been unable to generate sufficient new business to offset 
fully the impact of customer losses. CHEP USA now anticipates total pallet 
issues for the 2010 financial year will be approximately 3 per cent lower than 
the 2009 financial year. 
 
 
The slowdown in CHEP USA has resulted in the short-term accumulation of 
approximately 4 million additional idle pallets during the 2009 calendar year, 
which will result in associated short-term storage and handling costs. CHEP USA 
considers that these pallets are required to meet future customer growth 
requirements and does not plan to alter its previously announced program to 
scrap 7 million excess pallets. 
 
 
As announced in October, CHEP USA is also investing in a comprehensive new 
service and quality offering, through the Better EveryDay program, to respond to 
evolving customer requirements and position itself for long-term growth. This 
program involves a fast-track investment spread across the 2010, 2011 and 
2012 financial years. The implementation of Better EveryDay is proceeding as 
planned. 
 
 
In other parts of Brambles' business for the four-months to 31 October 2009: 
  *  CHEP EMEA's revenue was down 1 per cent to US$515 million, primarily reflecting 
  ongoing weakness in the automotive sector. Excluding automotive, CHEP EMEA's 
  revenue was up 1 per cent. 
  *  CHEP Asia-Pacific's revenue was up 2 per cent to US$126 million as the growth of 
  the reusable plastic crate business in Australia, and pallet volume growth in 
  China, offset ongoing weakness in the automotive sector. Excluding automotive, 
  CHEP Asia-Pacific's revenue was up 4 per cent. 
  *  Recall's revenue was down 3 per cent to US$248 million, reflecting the impact on 
  the Secure Destruction Services (SDS) business of lower activity in the USA and 
  Europe and lower paper prices. Excluding SDS, Recall's revenue was up 2 per cent 
  as its Document Management Solutions business continued to grow. 
 
 
 
Brambles' cash-flow and balance sheet positions are robust and the Company 
continues to manage both capital expenditure and working capital tightly. 
Brambles' liquidity position is strong, with significant unused funding 
facilities and no requirement to refinance any borrowings until the 
2011 financial year. 
 
 
CHEP and Recall remain strong businesses with outstanding market positions and 
robust operating models. These businesses have considerable scope to accelerate 
Brambles' financial performance when a broad-based recovery in economic 
conditions occurs. 
 
 
1. All growth figures are on a constant currency basis. Brambles calculates 
constant currency by translating non-US dollar results at the exchange rates 
applicable during the prior corresponding period 
2. Brambles calculates net new business by subtracting organic growth (defined 
as growth from sources that contributed to sales in both the period and the 
prior corresponding period) from total growth. 
 
 
A live webcast of Brambles' AGM and the full text of the Chairman's and CEO's 
addresses are available at www.brambles.com. Brambles will also make available 
an archived version of the webcast. 
 
 
+----------------------------------------+----------------------------------------+ 
| Investors & Media:                     |                                        | 
+----------------------------------------+----------------------------------------+ 
| Michael Roberts                        | James Hall                             | 
| Vice President                         | Manager                                | 
| Investor Relations & Corporate Affairs | Investor Relations & Corporate Affairs | 
| +61 2 9256 5216                        | +61 2 9256 5262                        | 
| +61 418 263 199                        | +61 401 524 645                        | 
| michael.roberts@brambles.com           | james.hall@brambles.com                | 
+----------------------------------------+----------------------------------------+ 
 
 
 
 
Brambles is globally headquartered in Australia 
 
 
 
 
For further information on Brambles and all company announcements, presentations 
and webcasts, please visit the company website www.brambles.com. 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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