Brambles Limited (BXB) announced that it anticipated that it would perform in line with its outlook for fiscal 2007. Furthermore, the firm noted that it was expecting strong cash flow generation to continue in the future.The firm said in a trading update provided to the market that its container and pallet service company, CHEP, continued to perform well, with solid overall growth in sales and profit, particularly in the Americas.

Overall underlying sales for CHEP in the Americas increased by 8% in the 11 months to May 2007 on the previous corresponding period, however European sales disappointed, growing by just under 2% for the same period.

The firm noted that CHEP Rest of World achieved 9% sales growth, and excluding the impact of start-up costs in China, is continuing to deliver strong profit growth.

"CHEP is continuing to build on its initial success in China and has signed contracts with four significant customers," the company said.

"As expected, the new sales pipeline is continuing to expand and this benefit future performance."

Brambles said its documents management company, Recall, had experienced stronger organic sales, growth and higher profits. Sales were up 11% in the 11 months to May 2007 compared to the previous corresponding period.

SHAW Stockbroking Equities analyst Brent Mitchell said that while there was very little to excite in this announcement, which included some disappointment on CHEP growth in Europe, it did clear some uncertainty on capital management.

The group also said that following the completion of its $142 million share buy back, it would seek approval at its annual meeting in November to buy back a further 10% of its shares.

On Wednesday shares in Brambles were trading 22c lower to $22.41