Brambles shares are tanking

Gabriel Bouys/AFP/Getty Images

Brambles is heading for a flat full year profit.

Shares in the the logistics group fell sharply after reporting a 44% fall in profit to $US162.3 million for the six months to December.

A short time ago, the shares were down 8.5% to $9.61.

Underlying profit was $US468.9 million, up 1%. Revenue was up 5% to $US2.74 billion.

Last month the company announced a profit warning, mainly due to higher-than-expected pallet returns in the US.

“Notwithstanding the challenges in Pallets North America, our portfolio of businesses remains in a strong position, both operationally and strategically,” says CEO Tom Gorman.

The company said today its expected full year underlying profit to be flat on 2016.

Brambles declared an interim dividend of 14.5 Australian cents a share, franked at 25%.

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