Preliminary 2012 Brambles Limited Earnings Presentation
August 16, 2012 12:30 AM
Brambles Limited (ASX:BXB) is engaged in the provision of pallet, container pooling and supply chain services, and information management services. It operates in two business segments: CHEP (pallet and container pooling) and Recall (information management). CHEP provides pallet and container pooling services, with locations in 45 countries. CHEP issues, collects and reissues through its network of service centers to manufacturers, producers, distributors and retailers to transport their products. CHEP also provides supply chain optimization and transport management services. Recall operates approximately 300 operations centers in over 20 countries. Recall’s services include management of information, providing secure storage, digitization, retrieval and destruction of information in multiple media formats. In September 2010, it acquired Unitpool AG. In November 2011, the Company launched CHEP Aerospace Solutions, an independent network of pooled unit load devices and repair centers.

No Presentation Available.

Well, good morning everyone. I'm Tom Gorman, I'm the CEO of Brambles, and I'd like to thank you for joining us this morning. I'm going to start today's presentation with an overview of the key issues and a summary of the highlights of our 2012 results. Greg, our CFO, will then walk you through the financial results in more detail before I return to the stage and discuss the context and the outlook for the future.

So firstly, let's get into the business update. One of the key messages for today is that we have met our profit guidance. Our underlying results of $1.01 billion at actual exchange rates translates to $1.061 billion at 30 June 2011 foreign exchange rates, and that amount is in the range of our guidance, and if you recall we gave our guidance at June 2011 exchange rates. Now to give you an idea of how much currency has moved in 12 months, please note that at 30 June 2012 foreign exchange rates, our results would be about $90 million and that number would total $972 million, and mostly this is because of the weakness in the Euro relative to the US dollar. This is relevant to our guidance which I will come to shortly.

The second key message for us today is that despite the weak economic environment, we expect to keep growing and we are going to continue to invest to deliver that growth. We will keep developing and improving our businesses and we will keep investing in the expansion of our pooling solutions operations. That means expanding in new and underpenetrated segments, rolling out new products and services, and of course entering new countries. We are forecasting underlying profit in FY13 in the range of $1.01 billion to $1.07 billion. Now this forecast again is at 30 June 2012 foreign exchange rates. Our guidance represents growth of 4% to 10% on the FY12 results, which as I said previously, was $972 million, again at a common exchange rate of 30 June 2012.

On the next slide I'll discuss the 2012 highlights in a bit more detail. Our underlying profit for the year was within the range we forecast 12 months ago which we tightened, if you might recall, at the half-year result in February. We achieved constant currency sales revenue growth in all segments, which was in line with our guidance and we delivered our specific sales targets in RPCs, Containers and emerging markets, our three focus areas for growth. We delivered our efficiencies as forecast as well, and these came from the new global Pallet structure, from integrating IFCO and of course from streamlining Recall. Our business improvement program in the US which we refer to as Better EveryDay continued to deliver improved customer outcomes and to deliver the planned efficiencies. What we didn't do last year was sell Recall but our decision to cancel the divestment process in June was predominantly a result of deteriorating capital markets conditions increasing the execution risk on the transaction.

 

...

DAILY FX REPORT

Company Presentation
22 May 2013 - Equities remain firm and the US$ a little weaker ahead of Bernanke's testimony. Most currencies were fairly rangebound today, with the exception of Cable, that took a hit on weaker than expected data. Before Bernanke/FOMC, the major focus will be the BOJ meeting/MPC statement, and later on, the BOE Minutes.
Latest Companies To Report
Latest Finance News
May 22, 2013 04:55 PM
22 May 2013 - ASX loses steam on sentiment drop. Iluka Resources Limited (ASX:ILU) expects its full year earnings to fall on the back of lower prices ...
Real Estate
May 22, 2013 03:15 PM
22 May 2013 - Home loan lenders are battling for the hearts and minds of borrowers following the central banks record rate cut earlier this month.

Subscribe To Newsletter

Comment on this story
Full Name:
 
Email:
 
 
 
Comment:
 
Type the characters you see in the picture below.
 
 
Letters are not case-sensitive
Captcha:


Latest Finance News
May 22, 2013 04:55 PM
22 May 2013 - ASX loses steam on sentiment drop. Iluka Resources Limited (ASX:ILU) expects its full year earnings to fall on the back of lower prices for its mineral sands.

Interviews
May 22, 2013 02:00 PM
22 May 2013 - Simon Blanchflower of Altrinsic speaks to FNN about the global market outlook and how the fund identifies the best investment opportunities.

Company News
May 22, 2013 11:02 AM
22 May 2013 - RHG Limited (ASX:RHG) says Resimac and AMAC have made an offer for the mortgage business valued at 43 cents per share.