Shares of Brambles are trading over 8% lower in early trade as the pallet maker announced profits will fall well short of their original guidance.
For the first 6 months of the fiscal year, the company reported a 26% fall in net profit to USD 330.4 million. The drop was a largely blamed by a sharp write down on its Hoover Ferguson Group venture, as well as, margin pressure in its US business.
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Back in November the company’s guidance suggested constant-currency sales growth in the 7 to 9% range and underlying profit growth in the 9 to 11% range.
Brambles declared an interim dividend of 14.5 cents a share.
Subscribers will remember that the Algo engine gave a sell signal on January 4th at $12.50. Brambles shares hit an 18-month low $9.54 earlier today.
