Brambles sales growth gets shaved by a strong US dollar

Daniel Berehulak/Getty Images

Brambles generated an 8% increase in sales to $US2.795 billion for the six months to the end of December.

But the impact of a stronger US dollar meant the actual sales rise for the handling and storage logistics company ended up being 5%.

After tax profit profit was $US286.1 million, a 2% rise. However, underlying profit was up 6% to $US485.2 million.

The company declared an interim dividend of 14 Australian cents, up 0.5 cents.

CEO Tom Gorman says the company is on track to deliver targets for the 2015 financial.

Brambles has maintained its guidance of constant-currency sales revenue growth of 8% to 9% and underlying profit of between $US1.055 billion and $US1.085 billion.

“Our sales and profit guidance reflects the strength of our portfolio and implies continued positive operating leverage despite the short-term cost challenges we are working through in the North American Pallets business,” Gorman says.

Brambles shares are down more than 3% to $10.37.

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