UPDATE 2-Australia's Brambles 10 month sales up 13 pct

Sun May 18, 2008 8:12pm EDT
 
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SYDNEY, May 19 (Reuters) - Brambles Ltd (BXB.AX), the world's No. 1 pallet supplier, on Monday reported a 13 percent rise in sales in the 10 months to May 2, underpinned by U.S. demand for grocery products.

Brambles did not give a reason for the sales rise. It said it released the figures as required under UK listing rules because it has a secondary listing on the London Stock Exchange.

Its shares rose 1.8 percent to A$9.07 by 0008 GMT.

Monday's statement "does not include all the matters that are included in Brambles' normal trading update," the company said, adding it would still issue its usual trading update on June 24.

Shares in Brambles slumped to a two-and-a-half year low of A$8.25 last month after it said U.S. retailer Wal-Mart Stores Inc (WMT.N) was reviewing its use of pallets.

Brambles' CHEP uni offers pallet management services to companies including Wal-Mart. The work involves tracking, retrieval and sorting of the large wooden trays used to carry and store merchandise.

The company earned about 36 percent of its first-half revenue from its American pallet business.

Brambles said in February revenue grew 13 percent to $2.1 billion in the first half, with sales from CHEP Americas up 11 percent, boosted by demand for grocery products from major customers like Procter & Gamble (PG.N), Kraft Foods (KFT.N) and Kellogg (K.N).

Brambles shares closed Friday at A$8.91. The stock traded above A$11 in January. ($1=A$1.05) (Reporting by Miranda Maxwell)

 
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