Brambles (bil.ASX:Quote,News) posted profit for the six months to December 31, of $US212.8 million ($325.78 million), down from $US293.7 million in the prior corresponding period.
Sales revenue was down two per cent at $US2.073 billion, compared to $US2.11 billion in the first half of fiscal 2008.
Basic earnings per share were 15.4 US cents, down 26 per cent, from 20.7 US cents the year before.
Brambles said trading conditions had deteriorated sharply around the globe, and particularly in the US and Europe, since it last provided guidance in November last year.
"The current challenging and volatile trading environment is expected to continue for some time and this makes it difficult to provide outlook guidance with confidence," it said.
Continuing business wins and three major cost-cutting initiatives are positioning the company to effectively manage the tough economic times, Brambles said.
Included in the cost cutting is the axing of about 750 staff from Brambles' global operations in the next 12 months.
The "global rationalisation of facilities and operations" would cost $US7.9 million, but save $US40 million to $US50 million before tax annually, Brambles said.
The company will also accelerate the scrapping of seven million CHEP pallets in the US at a one-off cost of $US99 million, to eliminate excess pallets arising from the economic downturn.
"Good usable timber would be recovered," Brambles said.
Finally, Brambles will increase its investment in its two-year pallet quality program in CHEP USA by $US60 million, to achieve optimal services, pallets qualities and cost efficiency by December 2009.
The company declared an interim dividend of 17.5 US cents, up from 17 cents at th same time last year.
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