BXB Brambles Limited

   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 despite worries over the health of the global economy driven by a slowdown in China.

Brambles said it expects to report an underlying profit of between US$1.00 billion and US$1.02 billion in the year through June, 2016, which would represent an increase of 6-8% on the 2015 fiscal year if calculated using spot currency rates at the end of June. The company also said it expects sales revenue to increase by a similar percentage, from US$5.46 billion in the year just ended.

"This outlook represents continued delivery of profitable growth despite the tepid nature of global economic recovery and ongoing cost pressures in our North American Pallets business," said Chief Executive Tom Gorman. "It also reflects the near-term impact of the increased investment we are making to drive long-term value for customers and shareholders."

On Thursday, Brambles reported net profit of US$584.4 million for the year through June, which was down 51% after stripping out the impact of currency swings. The company declared a final dividend of 14 Australian cents (US$0.10) a share, up from 13.5 cents a year earlier.

-Write to David Winning at david.winning@wsj.com

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(END) Dow Jones Newswires

August 19, 2015 19:27 ET (23:27 GMT)

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