Brambles Boosted by U.S. Customer Wins, Will Reorganize Global Pallet Business

CHEP parent Brambles  is enjoying the benefits of new customer wins in North America.  Net profit grew from $US239.5 million to $US302.5 million for the six months ending December 31, 2012.

The pallet giant generated sales revenue of US$2,889.7 million in the six months ended 31 December 2012, up 4%, as a result of strong new business growth, especially in CHEP USA, the continued expansion of its RPCs segment and ongoing growth in emerging markets.

Operating profit was US$481.4 million, up 14%. Underlying profit was US$490.0 million, up 7%, reflecting sales growth, efficiencies in the pallets business and scale benefits in RPCs.

“This result is a reflection of the strength of our established operations and our ongoing ability to deliver profitable growth from expanding and diversifying our unique supply-chain equipment pooling expertise, said Tom Gorman, Brambles CEO.  “The continued growth and improved efficiency of the Americas region of our Pallets segment, despite only moderate improvement in economic conditions to date, is particularly pleasing. The Europe, Middle East & Africa (EMEA) region is performing resiliently and is on track to deliver efficiency gains.”

Gorman noted that  the RPCs segment saw constant currency sales revenue growth to be between 10% and 15% with a solid future outlook. “The benefits of our increasing scale will enable us to continue to improve profitability as we expand,” he said.

The Brambles CEO added that Brambles is excited by the prospects for immediate profitable growth in the Intermediate bulk containers business following therecent acquisition of Pallecon, as well as the long-term growth opportunities in the aerospace and automotive sectors.

Brambles also announced that it is simplifying the organisation structure of its pallet business. Peter Mackie, currently Group President of the Americas, will assume leadership of all CHEP pallets operations globally. As a result, Dolph Westerbos, currently Group President for EMEA and Asia-Pacific, will leave Brambles after a short transition period.
“Over recent years we have strengthen ed our partnerships with customers, diversified our range of products and services in pooling solutions and grown into new regions” Gorman stated. “At the same time, we are developing into a more efficient, leaner, more focused and more integrated organisation. In line with this evolution, the creation of a single leadership structure for the global Pallets segment will enable us to simplify decision-making and make further progress in delivering global best practice.”

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