Shares in logistics company Brambles Limited (ASX: BXB) opened up today at $9.63 today off the back of news the company will invest more than $300 million into automation over the next three years.
The investment will see Brambles attempt to accelerate robotics in its plants, with hopes the move will see a 30% increase in network capacity across its US facilities, where competition is most aggressive.
Brambles has been hamstrung by rising timber costs in North America over the last 12-months which has affected its pallets business, with timber costs also on the rise across Australia.
The last 12-months has been volatile in terms of share price for Brambles, with shares at $9.11 at this time last year and some extreme price peaks and troughs in between.
Brambles reported a NPAT of US$447.2 million as part of its half-year results in February – triple what it was in the previous corresponding period – but the boost was partially due to a US$130.1 million tax benefit.
With sales revenue up 9% for the first-half Brambles will be hoping its automation strategy can also help to offset higher transport costs plaguing the company.
