Brambles Ltd., known to be the world's largest supplier of pallets, announced a drop in profit in U. S., U. K. and Spain.

The company's first-half earnings for the financial year dropped 7 per cent to about $230 million.

Net profit for the six months to Dec. 31 fell 3% to US$207.1 million from US$212.8 million a year earlier, which the company said represents a 7% fall on a constant currency basis.

Macquarie said that it was not expecting good results, but the results were "way below our expectations".

Meanwhile, Citigroup said that its industry contacts do not expect any material improvement until the third or fourth quarter of 2010 in the USA.

With its new business structure, the company is hopeful for better business.

The business has won more customers than it has lost since the restructure was announced in November, Chief Executive Tom Gorman said on a positive note.

Macquarie expects Brambles' margins to grow as the U. S. and European economies will recover from the economic crisis.