BIL brambles industries limited

Stock to watch

  1. 635 Posts.
    All eyes on BIL this morning -
    Good luck to those invested.
    The puts could see some pressure today imo., but then on the other hand I don't underestimate the 'power' of MM's. weshallsee.


    Stock to Watch: BRAMBLES INDUSTRIES
    09:34, Thursday, 20 June 2002

    Sydney - Thursday - June 20: (RWE)
    ----------------------------------
    BRAMBLES SHARES SET TO RALLY AFTER
    UPDATE QUELLS DOWNGRADE FEARS
    Overview
    --------
    Shares in Brambles Industries Ltd (BIL) look set for a rally
    today after its UK-listed shares gained 4.4 per cent in London overnight
    following the release of a long-awaited trading update.
    The world's largest provider of storage pallets took a weight of
    investors' shoulders, saying it should report "progress" in its fiscal
    second half.
    "The group overall is continuing to perform in line with our
    expectations in late February this year," the statement said.
    Restructuring of its US-based CHEP pallet rental unit had "begun
    to yield results" while revenue growth at CHEP and Cleanaway had
    continued, the company said.
    The news was welcomed by shareholders in the UK overnight and is
    expected to see the company's shares recover some of the losses they
    incured recently on investor fears of a possible profit downgrade.
    Brambles closed down 2.9 per cent to $8.60 yesterday on the
    Australian Stock Exchange on volume of 6.7 million as skittish investors
    bailed out of the stock.
    Sellers were concerned about the company's US-based CHEP pallet
    business, believing it could take longer than expected to restore the
    strong profit margins it generated during the late 1990s.
    But Brambles said CHEP's overall performance in the US and
    Europe had stabilised over the past five months and forecast business
    would improve in 2002/03.
    Details
    -------
    Last price: $8.60
    High/Low for year: $11.80/$8.42
    P/E ratio: 23.62
    Dividend yield: 3.08 per cent
    Background
    ----------
    Brambles Industries Ltd's (BIL) core business is materials
    handling and industrial and equipment services in Australia, NZ, North
    America and Europe.
    The company reported a drop in earnings per share before
    significant items for the half to end-December.
    Brambles' CHEP pallet business posted a weaker result before
    tax, interest and amortisation on the back of higher depreciation,
    information technology and other costs.
    While the company's Cleanaway business posted a lift in
    underlying performance, operating margins shrank to 10.6 per cent from
    12.5 per cent.
    The standout performer was Brambles's Recall operation, which
    delivered a 63 per cent jump in operating profits and higher margins.
    Brambles is focused on organic growth and improving the
    efficiency of its CHEP business.
    The company has forecast an improvement in its CHEP business in
    2002/03 thanks to operational cost efficiencies.
    Brambles merged with British engineering group GKN last year,
    creating a global support services group.
 
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