I'm LongbridgeAI, I can summarize articles.Brambles, a global pallet supplier, has reduced its annual revenue and profit guidance due to challenges in meeting U.S. customers' demands for higher-quality repairs. The company now expects revenue growth of 2-3% and profit growth of 3-5%, down from previous estimates. Additionally, Brambles announced a $400 million share buyback program.
By Stuart Condie
SYDNEY--Global pallet supplier Brambles cut its annual revenue and profit guidance after it struggled to keep up with some U.S. customers' demands for higher-quality repairs.
Australia-listed Brambles, which leases out pallets under the CHEP brand, on Monday said some U.S. customers needed pallets to be repaired to a higher standard so that they could be handled by automated systems.
That increased demands on some subcontracted service centers in the northeast and central U.S., it said. Constraints emerged due to subcontractor turnover, labor availability and the extra time required to repair pallets, Brambles added.
With pallets taking longer to be put back into circulation, Brambles said it now expects annual sales revenue to grow by between 2% and 3%, compared with previous guidance for 3-4% growth.
It expects underlying profit to grow by between 3% and 5%, down from 8-11% previously.
Brambles announced a new $400 million on-market share buyback to commence on completion of its existing buyback of the same size.
Write to Stuart Condie at stuart.condie@wsj.com
(END) Dow Jones Newswires
May 17, 2026 19:03 ET (23:03 GMT)
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