Pallet supplier Brambles has maintained full year earnings guidance, with sales revenue growing so far in 2012/13 despite difficult economic conditions.
The company said on Thursday sales to the three months to September 30, 2012, came in at $US1.425 billion, up three per cent from the prior corresponding period.
Moreover, Brambles said it was on track for underlying profit for 2012/13 to come in a previously announced range between $US1.01 billion and $US1.07 billion ($A994.29 million and $A1.05 billion) at June 30, 2012 exchange rates.
Underlying profit for 2011/12 was $US1 billion ($A981.88 million), Brambles said in August.
Brambles chairman Graham Kraehe said the company has shown resilience amid difficult times.
“Challenges remain, not least tough economic conditions in some of our largest markets of operation,” Mr Kraehe told shareholders at Brambles’ annual general meeting in Sydney on Thursday.
“However Brambles is in a strong position not only to weather those challenges but also to continue to prosper despite the economic headwinds and to accelerate growth when conditions improve.”
Brambles chief executive Tom Gorman said first quarter revenue growth was strongest in Brambles’ pallets business in the United States, which was up 10 per cent from the previous corresponding period.
Revenue in the pallets business in the Asia/Pacific region rose by six per cent.
In Europe, the Middle East and Africa, revenue fell three per cent.
In Brambles’ data management business Recall, new business wins and pricing growth were not enough to offset the impact of lower paper prices and reduced activity in document destruction, Mr Gorman said.
“Although economic conditions have continued to negatively impact organic volume growth in many parts of our business, and the opportunities for pricing growth remain relatively modest, our ability to grow through generating new business continues to be strong,” Mr Gorman told shareholders.
“Despite the ongoing global economic malaise, we are on track for another strong year.”
At 1545 AEDT, Brambles was down one cent at $7.14.
