Brambles 2006 Annual Report - Alle jaarverslagen

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Brambles
2006 Annual Report
BVA and Return on Capital Invested
performance
2006 at
fixed
June 05 fx
US$m ROCI %
2005 at
fixed
June 05 fx
US$m ROCI %
CHEP Americas 167 25% 53 16%
CHEP Europe 112 21% 63 17%
CHEP RoW 77 38% 67 36%
CHEP 356 25% 183 18%
Recall 13 13% 12 13%
Continuing
(pre corporate) 369 22% 195 18%
Unallocated
corporate costs (22) (16)
Total continuing
operations 347 22% 179 17%
Total BVA for Brambles’ continuing operations in 2006
was US$347 million, an increase of US$168 million on the
previous year based on comparable fixed exchange rates.
This represents an increase in Return on Capital Invested
(ROCI) from 17% to 22%.
CHEP continues to improve profitability and returns
in all regions.
Continued focus on tight asset management control and
discipline over the use of cash improved CHEP’s cash flow
from operations after net capital expenditure to US$672.2
million, an improvement over last year’s US$605.1 million.
This was against a background of sales growth of 8%.
Average Capital Invested in CHEP Americas was marginally
higher than the previous year at US$1.29 billion, in spite
of 10% sales growth (11% if the impact of the sale of the
RPC assets is excluded).
A very strong profit performance saw comparable
operating profit improve 56% at US$324.9 million.
The combined effect of profit improvement and broadly
constant levels of Capital Invested pushed ROCI for CHEP
Americas up to a record 25%, for the first time exceeding
that of CHEP Europe. Cash flow from operations after
net capital expenditure in CHEP Americas grew from
US$234.2 million to US$296.9 million, largely driven by
profits, offset by increased capital expenditure to meet the
demands of volume growth.
In CHEP Europe, sales growth was 6%, but comparable
operating profit grew significantly by 20% at US$263.6
million. Average Capital Invested reduced from US$1.33
billion to US$1.25 billion, contributing to ROCI of 21%,
up from 17% last year. CHEP Europe also increased cash
flow from operations after net capital expenditure from
US$273.7 million to US$282.9 million.
CHEP Rest of World once again had a good year, with
comparable operating profit growth of 12% exceeding
sales growth of 9%. Average Capital Invested remained
flat at US$0.30 billion helping to lift ROCI to 38%, a
landmark achievement for a CHEP region. Cash flow
from operations after net capital expenditure in CHEP
Rest of World decreased slightly from US$97.2 million
to US$92.4 million.
Recall maintained ROCI of 13% after absorbing the
extra capital invested associated with the acquisition of
AUSDOC for US$191 million, which was recognised on
29 November 2005. Comparable operating profit grew
15% at US$97.5 million.
Discontinued Operations
The results of discontinued operations are distorted by
the effect, under IFRS, of the cessation of depreciation
and equity accounting in relation to assets held for sale.
The table below shows the performance of Brambles’
discontinued operations after adjusting for this effect.
Discontinued operations
IFRS
US$m 2006 2005
Comparable operating profit 310.5 216.0
Constant currency comparable operating profit 319.8 216.0
Cessation of depreciation adjustment (106.3) –
Equity accounted results adjustment 9.3 –
Total adjustments (97.0) –
Underlying constant currency comparable operating profit 222.8 216.0