Australia's Brambles profit rises 11 pct, Recall demerger on track

SYDNEY Wed Aug 21, 2013 7:04pm EDT

SYDNEY Aug 22 (Reuters) - Australia's Brambles, the world's largest provider of pallets, said on Thursday its full-year net profit rose 11 percent, driven by strength of its pallet business in the Americas region and its global crates unit.

The company, which revived a plan to spin off its $2 billion data management business Recall last month, said it was on track for the planned demerger in December and expected to lodge she scheme book in October.

The demerger has been welcomed by analysts as Brambles would be able to focus on its core pallet business.

Brambles also said it expected revenue growth in constant currency from all pooling solutions businesses for financial year 2014. Excluding the demerged Recall business, the company expected a growth rate of 4 percent to 8 percent in underlying profit.

The company posted a net profit after tax of $639.9 million for the year ending June 30, rising from $574.9 a year ago. But that was still a touch lower than the average analysts forecast of $677.8 million, according to Thomson Reuters Starmine data.

Underlying profit, before significant items, rose 5 percent to $1.057 billion, which was at the top end of its own guidance range of $1,030 million to $1,060 million.

Brambles shares have climbed 22 percent this year, against a 10 percent rise in the broader market. It closed at A$9.18 on Wednesday. (Reporting By Maggie Lu Yueyang; Editing by Richard Pullin)

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