Brambles shares hit all-time highs yesterday, peaking at $13.42 after releasing a solid half-year result that came in on guidance.
The shares closed at $13.14, up 3.8% after being up more than 6% at one stage.
The driver of those gains was the first-half performance.
Brambles posted a 9% fall in first-half net profit to $US277.9 million ($A413.3 million), on a constant currency basis, compared to the prior first half result of $US319.8 million ($A475.6 million).
The result was 13% lower after currency costs, but due to missing revenue from discontinued (sold) operations.
Brambles underlying profit was up 5% at $US435.5 million ($A647.7 million) for the first half – on a constant currency basis – after a 7% rise in revenue of $US2.397 billion ($A3.570 billion) on a constant currency basis.
The dividend was set at an unchanged 9 US cents for the half 13.38 Australian cents for the half-year. It was 14.5 Australian cents a year ago.
CEO Graham Chipchase said the pallets and containers business has delivered sales and earnings growth across all its segments.
Brambles is expecting mid-single-digit sales revenue for the full financial year and underlying profit in line with sales on a constant currency basis.
“Our operating environment in the first half was characterised by increasing macroeconomic uncertainty and ongoing political instability, particularly evident in major European markets,” he dais in a statement.
Mr. Chipchase said sales revenue was above guidance range for the first half.
More than 40% of sales revenue comes from Brambles its Americas business.
Brambles said its US margins had improved about one percentage point in the first half and they continue to aim for a 2.0 to 3.0 percent percentage point improvement through measures such as pricing and efficiency gains.