Manufacturing News

Brambles looks to investment to support long-term objectives

Logistics company Brambles is looking to lift capital investment by $US1.5 billion over next four years.

The company told an investment market briefing in California today that it will also undertake Customer collaboration and innovation programs in a drive to improve its long-term value.

Brambles reiterated its forecast for an underlying profit of $US1bn to $US1.02bn in 2016 (an increase of 6 – 8 per cent).

Objectives for the 2019 financial year include the retention of a commitment to 20% ROCI target, prior to acquisition impacts; Average Capital Invested CAGR likely to exceed original 5% expectation; and Organic growth investment now anticipated at US$1.5B from FY16 to FY19.

As Brambles’ CEO Tom Gorman commented in August – “The sales and profit growth we delivered in FY15 reflect the continued ability of our people and operations to keep delivering growth over and above the rate of growth in the industries we serve.

“Our consistent growth has come despite economic conditions that remain muted and uncertain, intensifying competitor activity and limited pricing opportunities.”

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