June 30 (Reuters) - Brambles Ltd (BXB) :
- BRAMBLES PLASTIC PALLET DECISION
- CONFIRMED UNABLE TO PROCEED WITH INVESTMENT IN A PLASTIC PALLET POOL FOR CUSTOMERS SUPPLYING TO COSTCO WHOLESALE CORPORATION IN US
- CONTINUES TO HAVE A STRONG RELATIONSHIP WITH COSTCO AND ITS SUPPLIERS
- BRAMBLES LTD SEES CONVERSION TO PLASTIC PALLETS AND ASSOCIATED IMPLICATIONS WILL LIKELY BE PHASED OVER MULTIPLE YEARS
- NEITHER COSTCO OR ITS SUPPLIERS WILLING TO AGREE TO REQUIRED COMMERCIAL TERMS & PRICE PREMIUM TO ENABLE CO TO MEET ITS ROCI TARGETS
- DO NOT ANTICIPATE A SHORTAGE OF DEMAND FOR CO'S PALLETS IN UNITED STATES
- CONTINUE TO EXPECT IMPROVEMENT IN UNDERLYING PROFIT BETWEEN FY21 AND FY25 TO BE WEIGHTED TO CHEP AMERICAS SEGMENT
- CONVERSION TO PLASTIC PALLETS WITHOUT ADEQUATE COST RECOVERY, DILUTIVE TO BRAMBLES' ROCI
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