WestRock Reports Fiscal 2019 First Quarter Results
"We completed the KapStone acquisition and have moved quickly to integrate these operations into our company . . . Our outlook for fiscal 2019 and beyond remains positive as we invest to improve our cost structure and advance our differentiated strategy." – Steve Voorhees, CEO, WestRock.
Jan. 31, 2019 - WestRock Company (NYSE:WRK), a leading provider of differentiated paper and packaging solutions, today announced results for its fiscal first quarter ended December 31, 2018.
First Quarter 2019 Highlights
- Earned $0.54 per diluted share and $0.83 of adjusted earnings per diluted share compared to $4.38 per diluted share and $0.87 of adjusted earnings per diluted share in the prior year quarter.
- The effective tax rate was 31.0% and the adjusted tax rate was 23.3%.
- 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, compared to a tax expense of $4 million, or $0.02 per diluted share, in the first quarter of fiscal 2019.
- Completed the acquisition of KapStone Paper and Packaging Corporation (“KapStone” and the “KapStone Acquisition”) on November 2, 2018, and has included the results of KapStone in the Company's financial results subsequent to that date.
- Increased Corrugated Packaging Segment EBITDA by $26 million compared to the prior year quarter. Increased Corrugated Packaging Adjusted Segment EBITDA by $86 million compared to the prior year quarter, which includes addbacks of $40 million of direct costs incurred as a result of Hurricane Michael (net of $20 million of insurance proceeds), $25 million of acquisition inventory step-up charge related to the KapStone Acquisition and $3 million related to other items.
“We completed the KapStone acquisition and have moved quickly to integrate these operations into our company. The WestRock team overcame the challenges of Hurricane Michael and high input costs to deliver solid financial and operating results for the first fiscal quarter,” said Steve Voorhees, WestRock's chief executive officer. “Our outlook for fiscal 2019 and beyond remains positive as we invest to improve our cost structure and advance our differentiated strategy. We remain focused on delivering exceptional value for our customers and our stockholders.”
Consolidated Financial Results
The Company aligned its financial results for all periods presented in this press release to move its merchandising displays operations from its Consumer Packaging segment to its Corrugated Packaging segment. Additionally, in fiscal 2019 the Company began conducting its recycling operations primarily as a procurement function. As a result, no recycling sales are recorded and the margin from its recycling operations reduces cost of goods sold.
WestRock's full Fiscal 2019 First Quarter Results can be found on the company's website: www.westrock.com.
WestRock partners with its customers to provide differentiated paper and packaging solutions that help them win in the marketplace. WestRock's 45,000 team members support customers around the world from more than 300 operating and business locations spanning North America, South America, Europe, Asia and Australia. To learn more, please visit: www.westrock.com.
SOURCE: WestRock Company