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.
BIL Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held