Brambles Ltd said it expects to report solid earnings growth from its retained CHEP pallets businesses and its Recall documents handling business for the year to June, as it continues to benefit from a major restructuring program initiated two years ago.

'CHEP is continuing to perform well with further solid overall growth in sales and profit,' Brambles said in a earnings update, adding that CHEP Americas is again delivering a strong performance in both sales and profits.

Brambles, the world's largest provider of pallets for shifting goods, said CHEP Americas underlying sales for the 11 months to May were 8 pct higher than the prior corresponding period despite a more challenging retail environment in the US.

'CHEP USA, being the major driver to this improved performance, continues to benefit from significant operational efficiencies and further market penetration,' it said.

It said CHEP Europe's sales growth for the 11 months to May was slightly less than 2 pct with a small increase in profits and CHEP operations in the rest of world continued to deliver strong growth.

Brambles said Recall's performance continued to improve with stronger organic sales growth and higher profits.

In February, the group reported first half net profit from continuing operations rose to 270.6 mln usd from 180.1 mln a year earlier, and forecast solid profit growth in the second half.

The group's restructuring involved the sale of businesses such as its Cleanaway waste management operations in Europe, Australia and New Zealand,

The asset sale program, completed in February, raised a net 3.3 bln usd.

Since March Brambles has used 3.4 bln usd on various capital management initiatives aimed at increasing returns to shareholders.

These included buying back 10 pct of its issued capital since December and special dividend payments.

Brambles said the capital management initiatives have resulted in a more appropriately structured

balance sheet, with group net debt at the end of May 2007 of 2.1 bln usd, consistent with a solid investment grade credit rating.

The group said as cash flow generation remains strong it will seek shareholder approval at its November annual general meeting for further share buybacks.

Brambles will report its full year results on Aug 22.