Brambles Limited (ASX: BXB) has today released an update for its third quarter operations, reporting reasonable sales growth and confirming full-year earnings guidance. However, the result wasn't enough to impress investors who sold the stock 2.5% lower to $11.02.
Brambles, which boasts a market capitalisation of $17.6 billion, according to Google Finance, is a supply-chain logistics company behind brands such as IFCO and CHEP (a name you will often see on the side of shipping pellets). For the nine months through to 31 March, Brambles reported sales revenue of US$4,044 which is an 8% increase in constant currency terms.
Unfortunately, sales on an actual currency basis were up just 2% over the period due mainly to strength in the US dollar, which may be why investors have reacted negatively to the report.
Pleasingly however, management did confirm that it was still on track to meet full-year 2015 underlying profit expectations after having upgraded them in November. Sales growth is expected to remain at approximately 8% for the year at a constant currency, while the full-year underlying profit should come in between US$1.055 billion and US$1.085 billion, as at 30 June 2014 foreign exchange rates.
