North American Organic Box Shipments Increased 2.7%
KapStone Synergies Ahead of Schedule
ATLANTA- WestRock Company (NYSE:WRK), a leading provider of differentiated paper and packaging solutions, today announced results for its fiscal third quarter ended June 30, 2019.
Third Quarter 2019 Highlights
- Earned $0.98 per diluted share and $1.11 of adjusted earnings per diluted share compared to $1.03 per diluted share and $1.09 of adjusted earnings per diluted share in the prior year quarter.
- The Corrugated Packaging segment delivered a Segment EBITDA margin of 20.6% and a North American Adjusted Segment EBITDA margin of 23.1%, an increase of 20 basis points and 110 basis points, respectively, compared to the prior year quarter.
- Achieved $80 million of run-rate synergies and performance improvements towards our target of achieving $200 million for the KapStone acquisition by the end of fiscal 2021.
- Recorded $15 million of pre-tax income, or $0.04 per diluted share, for the receipt of business interruption insurance proceeds related to the impact of Hurricane Michael on the Panama City, Florida mill that was not included in the Company’s guidance for the quarter.
- Total debt declined $257 million and Net Debt declined $282 million compared to the second quarter of fiscal 2019.
“The WestRock team executed well in the third fiscal quarter,” said Steve Voorhees, chief executive officer. “We remain focused on generating organic growth, maximizing the full potential of our broad, comprehensive product portfolio and delivering on our productivity and cash flow generation goals. With the advantages of our diverse portfolio and the multiple levers in our control, I remain confident in our ability to create long-term value for our customers and stockholders.”