Pallet maker Brambles cuts 750 further jobs as H1 profit plummets

Global pallets and containers supplier Brambles Ltd has announced a further 750 job cuts over the next 12 months after it saw further sharp deterioration in trading conditions around the globe since its November AGM, with its businesses in the USA and Europe particularly hit.

In its interim results statement, the Australian group with a secondary listing in London said the current challenging and volatile trading environment is expected to continue for some time which makes it difficult to provide outlook guidance with confidence.

Pretax profit in the first half to end-December 2008 fell to US$273.9 million from US$419.8 million a year earlier, and group sales revenue fell 2 percent to US$2.073 billion, however it was up year-on-year at constant currencies.

Brambles raised its interim dividend by 3 percent to 17.5 Australian cents.
 
The new job cuts are expected to cost US$60-70 million before tax over FY09 and FY10 and generate annualised savings of US$40-50 million once fully implemented.