Tom Gorman to exit as Brambles CEO, after a solid lift in profit

Brambles CEO Tom Gorman will step aside, as the pallets supplier forecast another year of bumper growth.

Tom Gorman to exit as Brambles CEO.

Brambles chief Tom Gorman will step aside next February to be replaced by former UK executive Graham Chipchase.

The move was unveiled this morning as the wooden pallets supplier (BXB) announced a solid lift in profit and predictions of another year of bumper sales growth.

Mr Gorman took over after Mike Ihlein was forced out in 2009 and has served over seven years in the job.

Brambles chair Stephen Johns said: “Tom took Brambles from being a pallet company to a supply chain solutions firm.”

Mr Gorman said “I was able to energise the company thanks to a great leadership team and staff.”

Mr Chipchase was chief executive of UK packager Rexam which was recently taken over by US firm Ball Corporation.

Meanwhile, Brambles is expecting another year of strong sales growth after overcoming global macroeconomic uncertainty to book a higher profit.

Brambles profit increased to $US588 million for the year through June, up 1 per cent year-on-year or 8 per cent on a constant currency basis.

Revenue increased 2 per cent to $US5.54 billion, or 8 per cent on a constant currency basis. Brambles said sales growth increase 15 per cent in emerging markets.

“We delivered accelerated revenue growth and strong operating leverage, despite macroeconomic uncertainty, industry headwinds and cost pressures in certain markets,” Mr Gorman said.

He said revenue growth was particularly strong in North America.

Brambles will pay a dividend of US14.55c a share.

Brambles said it was expecting another year of strong sales growth, up between 7 and 9 per cent on a constant currency basis.