Smurfit Westrock posts 'strong' first quarter after merger
Smurfit Westrock has posted a 'strong first quarter performance' for the newly merged packaging company with adjusted earnings before deductions of $1.25bn (€1.05bn).
In July last year, packaging giant Smurfit Kappa completed its merger with US packaging firm WestRock in a deal reportedly worth $11.2bn. The deal will create a packaging company that provides everything from corrugated storage boxes to beer carriers and e-commerce shipping materials.
During the first three months of its latest financial year, the company reported net sales of $7.66bn with net income of $382m.
This resulted in adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) of $1.25bn. The company is estimating full year adjusted EBITDA of between $5bn and $5.2bn.
Tony Smurfit, president and chief executive of Smurfit Westrock, said he was 'pleased to report a strong first quarter performance' which was 'in line with our stated guidance'.
'This performance was driven by good results across all three segments, with notable progress in North America, and is significantly ahead of the combined result for the prior year,' he said.
The company announced that its board has approved a quarterly dividend of $0.43 per share which will be payable on June 18.
The company recently announced the closure of 500,000 tons of paper production capacity in North America and it is also closing two converting facilities in the region. It has also initiated consultations to close two of their converting facilities in Europe, Middle East, and Asian region as well as the Asia-Pacific region.
'To consolidate our leadership position and better support our customers, we have constructed two state-of-the-art converting plants in Washington and Wisconsin and are completing a new Bag-in-Box facility in South Carolina in our North American region,' Mr Smurfit said.
'Comparable investments in EMEA & APAC, in high-performing converting equipment, will reduce our cost base and strengthen our overall footprint in the region while in Latin America.'
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Smurfit Westrock reports €307m net income in 2024
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