Graphic Packaging Holding Company Reports Second Quarter 2017 Results

Highlights
Q2 Net Sales were $1,094.7 million versus $1,103.2 million in the prior year period.
Q2 Net Tons Sold were 733.9 thousand tons versus 721.9 thousand tons in the prior year period.
Q2 Earnings per Diluted Share were $0.14 versus $0.24 in the prior year period.
Q2 Adjusted Earnings per Diluted Share were $0.15 versus $0.19 in the prior year period.
Q2 Net Income was $42.0 million versus $77.8 million in the prior year period.
Q2 Adjusted EBITDA was $170.6 million versus $195.2 million in the prior year period.
Returned $42.8 million to stockholders in Q2 through dividends and share repurchases.

Graphic Packaging Holding Company (NYSE: GPK), (the “Company”), a leading provider of packaging solutions to food, beverage and consumer product companies, today reported Net Income for second quarter 2017 of $42.0 million, or $0.14 per share, based on 311.1 million weighted average diluted shares.  This compares to second quarter 2016 Net Income of $77.8 million, or $0.24 per share, based on 322.5 million weighted average diluted shares.

Second quarter 2017 Net Income was negatively impacted by $4.4 million (net of a $1.7 million tax benefit) of business combinations and other special charges. When adjusting for these charges, Adjusted Net Income for the second quarter of 2017 was $46.4 million, or $0.15 per diluted share. This compares to second quarter 2016 Adjusted Net Income of $60.1 million or $0.19 per diluted share.

“Our second quarter Adjusted EBITDA met our expectations at $171 million compared to $195 million in the prior year period. Net Tons Sold were up 1.7%, reflecting an acquisition and slightly positive core volumes. We successfully completed our bi-annual maintenance cold outage at the West Monroe, Louisiana mill” said President and CEO Michael Doss. “The quarter was negatively impacted by accelerating commodity input costs, primarily recycled fiber, and the planned downtime costs.”

“We are executing price increases to offset the unprecedented recycled fiber input cost inflation and expect margins to improve from our pricing actions during the second half of 2017 and in 2018. Our focus on meeting cash flow commitments, growing cash flow, and returning more of it to stockholders over time has not changed. We returned $43 million to stockholders in the second quarter of 2017 through dividends and share repurchases. We announced the Carton Craft acquisition in mid-June, and completed the transaction on July 10, 2017. We remain committed to a balanced capital allocation strategy, which includes reinvesting in our business to drive strong cash returns on cash invested, strategic acquisitions at compelling post-synergy multiples, and returning cash to stockholders through dividends and share repurchases.”

Operating Results
Net Sales
Net Sales decreased 0.8% to $1,094.7 million in the second quarter of 2017, compared to $1,103.2 million in the prior year period.  When comparing against the prior year quarter, net sales were positively impacted by $13.0 million of improved volume/mix related to an acquisition and slightly positive core volumes.  These benefits were more than offset by $11.3 million of unfavorable foreign exchange rates and $10.2 million of lower pricing.

Attached is supplemental data showing Net Tons Sold for the first and second quarters of 2017 and each quarter of 2016.
more details at:  http://investors.graphicpkg.com/investor-relations/press-releases/press-release-details/2017/Graphic-Packaging-Holding-Company-Reports-Second-Quarter-2017-Results/default.aspx

Related Posts

Amcor investment in PulPac fiber technology to accelerate global deployment of innovative paper packaging

Amcor has announced its investment of US$3 million in PulPac, a Swedish company providing disruptive manufacturing technology for low-cost, high-performance fiber-based packaging. Amcor is one of several strategic investors in a cross-industry alliance aimed at driving the deployment of PulPac’s technology globally. PulPac is a pioneering, innovation-led company focused on developing its dry-molded fiber technology for use as a viable, sustainable option for the packaging industry. This solution uses raw materials readily found globally, manufactured using an innovative process that requires significantly less resources, which reduces CO2 emissions by 80%, compared to existing processes. This cross-industry investment will support PulPac’s global commercialization ambitions, enabling the company to deploy its solutions across markets and provide the potential for applications in Amcor’s own product ranges.

ProAmpac acquires packaging supplier Prairie State Group (canplastics.com)

In a deal that expands its position in the food and pet food markets and beefs up its labeling capabilities, flexible packaging supplier ProAmpac has acquired Prairie State Group (PSG), an SQF-certified provider of flexible packaging and labeling services based in Franklin Park, Ill. The financial terms of the transaction were not disclosed. PSG produces a range of SQF-certified and environmentally-friendly flexible packaging and label solutions, including wrappers, pouches, compostable film, roll stock, and pressure-sensitive labels.

Cutting plastic – Mondi develops new sustainable packaging for Kao’s salon hair cosmetic brand Goldwell

Mondi has partnered with Japanese consumer goods manufacturer Kao to create a recyclable, lightweight packaging solution for its Goldwell hair lightening products. The new stand-up pouch reduces plastic usage without compromising on strength and durability and thus supports Kao and its salon business in their efforts to reduce their environmental footprint and to help salons run their businesses more sustainably. Goldwell is a salon-quality brand of Kao Salon Division, the fourth biggest professional hair care business in the world. Its broad offering of hair care, styling and colour products also includes a range of hair lightening products created for in salon use. These were previously packed in rigid plastic containers, however working with Mondi and along its EcoSolutions approach, Kao is reducing the overall amount of plastic in individual packs by 80%. Mondi’s innovative solution packs the powdered products in flexible, re-closable stand-up pouches that are made of mono-material, meaning they are recyclable. The pouch is provided to the user together with paper instructions inside a carton box, enabling the pouch to be stacked when stored, and results in a lower carbon footprint compared to the previous packaging alternative.
Back To Top
×Close search
Search