Brambles Gets Back Con Agra Contract

Pallet supplier Brambles (ASX:BXB) has won back a contract from US food manufacturer Con Agra and an extension of Brambles' contract with Dole Foods in Central America. The deal came after Bramble's US competitor iGPS failed to supply Con Agra with plastic pallets.

An iGPS supplier cited funding concerns and Chapter 11 bankruptcy for delays in supply.

Brambles has reiterated operational full-year profit expectations of $696 million to $733 million. Despite sales revenue adding 5 percent to US$3.27 billion, Brambles chief executive Tom Gorman said that the business operations remain challenging.

"Our continued growth reflects new business wins throughout Brambles as we gain customers by focusing on improved service and quality, and pursue our strategy of expanding by product and geography," said Gorman. "However, conditions in our largest European markets remain challenging and the recovery in consumer activity in the US has been modest to date."

A high of US$766 million earnings before interest and tax was forecast by Credit Suisse analyst Anthony Moulder. Due to the new contract with Chep, Moulder also forecast a jump to US$860 million in 2012 earnings for the company.