Brambles has delivered a half year of profit, revenue and volume growth, but the logistics giant faces rising costs pressures in its key US and European operations.
Brambles' sales revenue rose five per cent to $US2.75 billion on the back of volume growth in Europe and the Americas, where double-digit revenue growth in its Latin-America pallets business.
Half-year profit at $US447.2 million ($A565.65 million), was triple the same time last year, aided by $US130.1 million of deferred US tax liabilities following the US company tax rate reduction.
The result was also skewed by the absence of a $US120 impairment suffered on its US oil and gas container joint-venture in the first half of 2016/17.
Chief executive Graham Chipchase said the improved offshore volume growth was offset by cost pressures in transport, handling and lumber.
"We continue to face structural cost challenges," Mr Chipchase said.
"It is something we have to get on and action in the next six months."
Underlying profit rose five per cent to $US493.7 million, despite the loss of a contract with Woolworths and the impact of the shutdown of Australian automotive manufacturing.
Mr Chipchase said Brambles was looking at options to cut the cost of business, including passing on higher prices.
"I don't think you should see the opportunity for a massive price increase but we'll do what we can, we have to, because transport and lumber inflation is significant," Mr Chipchase said.
Chief financial officer Nessa O'Sullivan said the long term effect of the US corporate tax changes will be negligible.
"The impact is not expected to be significant and we expect our annual effective tax rate from FY19 onwards to be between 27 - 29 per cent," Ms O'Sullivan said.
Brambles is maintaining its forecast of full-year sales revenue to grow in the mid-single digits, while underlying profit growth is likely to be in excess of sales revenue growth.
Brambles shares ended the day 11 cents, or 1.1 per cent, higher at $9.74.
BRAMBLES' HALF-YEAR PROFIT SURGES:
* Net profit $US447.2m vs $US146.2m
* Revenue up 5.0pct to $US2.75b
* Interim dividend flat at 14.5 Australian cents
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