Brambles Forecasts Higher FY17 Profit Despite Headwinds

   By David Winning 
 

SYDNEY--Brambles Ltd. (BXB.AU), a provider of wooden pallets and plastic containers used for transporting goods, forecast higher profit this fiscal year even as it grapples with global economic uncertainty and cost pressures in several markets.

Brambles said it expects to report an underlying profit of between US$1.055 billion and US$1.075 billion in the year through June, 2017, which would represent an increase of 9%-11% on the 2016 financial year if calculated using spot currency rates at the end of June. The company also said it expects sales revenue to increase by between 7% and 9%, from US$5.54 billion in the year just ended.

"In FY17, we expect to realize the benefit of the investment we have made to date in operational efficiencies, including the U.S. Pallets durability program, which is expected to more than offset direct cost pressures," Chief Executive Tom Gorman said.

On Thursday, Brambles reported net profit of US$587.7 million for the year through June, which was up 8% after stripping out the impact of currency swings. The company declared a final dividend of 14.5 Australian cents (US$0.11) a share, up from 14 cents a year earlier.

-Write to David Winning at [e-mail]

(END) Dow Jones Newswires

August 17, 2016 18:55 ET (22:55 GMT)

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