WestRock Company (WestRock) (NYSE:WRK), a leading provider of differentiated paper and packaging solutions, today announced results for its fiscal first quarter ended December 31, 2017.
First Quarter 2018 Highlights
•Earned $4.38 per diluted share and $0.87 of adjusted earnings per diluted share compared to $0.32 per diluted share and $0.47 of adjusted earnings per diluted share in the prior year quarter. •The Company’s first quarter of fiscal 2018 results included an estimated income tax benefit of $1.1 billion, or $4.19 per diluted share, as a result of the enactment of the Tax Cuts and Jobs Act.
•The adjusted tax rate was 25.2% for the quarter and the effective tax rate was not meaningful.
•WestRock’s Corrugated Packaging segment delivered Segment EBITDA margin of 19.6% and North American Adjusted Segment EBITDA margin of 21.4%, up 480 and 560 basis points, respectively.
•Achieved $60 million in year-over-year productivity and a run rate of $910 million of synergy and performance improvements since the creation of WestRock
•Invested $108 million in the Gondi, S.A. de C.V. (“Grupo Gondi”) joint venture to support its capital expansion plans, bringing WestRock’s ownership interest to 32.3%.
“Our team executed well against our strategy and delivered a strong quarter to start our fiscal year. We are creating value for our customers with WestRock’s differentiated portfolio of paper and packaging solutions,” said Steve Voorhees, WestRock’s chief executive officer. “The outlook for paper and packaging remains attractive and we are well positioned to achieve our financial goals for fiscal 2018 and beyond.”
The $447 million increase in net sales was primarily attributable to $235 million of increased Corrugated Packaging segment sales driven by higher selling price/mix, $252 million of increased Consumer Packaging segment sales, primarily due to the contribution from the Multi Packaging Solutions (“MPS”) acquisition, partially offset by the absence of net sales from WestRock’s former Home Health & Beauty (“HH&B”) business in the current year quarter due to the sale of HH&B in April 2017. In addition, Land and Development segment sales were $43 million lower.
The $125 million increase in segment income was primarily due to $123 million of increased Corrugated Packaging segment income and $5 million of increased Consumer Packaging segment income, which was partially offset by $2 million of decreased Land and Development segment income.
more detail at: http://ir.westrock.com/press-releases/press-release-details/2018/WestRock-Reports-Fiscal-2018-First-Quarter-Results/default.aspx