Brambles Releases Trading Update: CHEP Americas Still Waiting for Uptick

Brambles has reported that sales revenue for the nine months ended March 2010 was 1% lower than the
prior corresponding period. This reflected the slow rate of economic recovery in major operating regions
such as the USA, UK and Spain as well as the impact on CHEP USA of business lost in the last quarter of
the 2009 financial year and the first quarter of the 2010 financial year.

Brambles’ CEO Tom Gorman said: “Brambles is in a strong financial position and our comparable trading
performance is gradually improving. In the three months ended March 2010, group sales revenue rose 1%
compared with the prior corresponding period, with growth in all business units except CHEP Americas.
Brambles remains well-placed to benefit from broad-based recovery when it occurs and continues to focus
on pursuing profitable growth opportunities.”

In the nine months ended March, Brambles’ results by business unit compared with the prior corresponding
period were:
• CHEP Americas’ sales revenue was down 4%, with CHEP USA yet to experience an improvement in
organic volumes. CHEP USA continues to win new business. However, the impact of these wins has
been insufficient to offset the impact of customer losses experienced in the last quarter of the 2009
financial year and the first quarter of the 2010 financial year.
• CHEP Europe, Middle East & Africa’s sales revenue was flat as net new business wins across the
region offset a decline in organic volumes resulting from subdued underlying economic conditions,
particularly in the UK, Spain and the automotive sector.
• CHEP Asia-Pacific’s sales revenue was up 4%, reflecting the resilience of the Australian economy, net
new business wins and strong growth in the developing markets of China and India.
• Recall’s sales revenue was up 1%. The Document Management Solutions business continued to
generate growth in organic sales and to record significant new business wins, offsetting the impact of
subdued activity in the Secure Destruction Services business.

Outlook
Subject to unforeseen circumstances, Brambles expects group sales revenue for the 2010 financial year to
be broadly in line with the prior financial year on a constant currency basis. CHEP USA continues to expect
a decline in pallet issue volumes of 3%.

To read the full CEO presentation, click here.

As a result of conditions in CHEP USA, CHEP Americas is yet to experience an improvement in operating
profit margins compared with the first half of the 2010 financial year.

Speak Your Mind

*