The company’s board of directors authorised a repurchase programme for an additional 25 million shares during the quarter.
US-based corrugated packaging company WestRock has reported net sales of $5.4bn in the second quarter (Q2) of the fiscal year 2022 (FY22), up by 21.3% from a year earlier.
During the quarter, the company’s Paper Business segment sales increased by $408m and its Corrugated Packaging segment saw its sales rise by $297m.
Its Consumer Packaging and Distribution segments’ sales rose by $170m and $82m respectively.
For the three months to 31 March, WestRock’s net income dropped by $73m, or 64.5%, to $40m from a year earlier, while its adjusted net income increased 112.9% to $309m.
The company’s diluted earnings per share (EPS) were $0.15, against $0.42 a year ago, and its adjusted EPS grew from $0.54 in Q2 2021 to $1.17.
Driven by strong performance in its paper and consumer packaging segments, WestRock’s consolidated adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 33.3% year-over-year to $854m.
WestRock CEO David Sewell said: “We delivered an outstanding second quarter, reporting record revenue and impressive adjusted earnings growth despite facing continued challenges from inflation, higher supply chain costs and labour shortages.
“This strong performance speaks to the resiliency of our broad portfolio, and the resolve of our 50,000 talented employees.
“While we are in the early innings of our transformation, we have made significant progress and have substantially more to come.
“Our future is bright and I’m confident we will capitalise on the tremendous opportunities ahead.”
Last month, WestRock revealed plans to permanently end operations at its mill in Panama City, Florida, putting around 450 jobs at risk.
The mill produces 645,000t of containerboard, primarily heavyweight kraft, and fluff pulp a year.
It is due to close by 6 June this year.
Following the mill’s closure, WestRock will switch the manufacturing of select grades of containerboard currently produced at the mill to its other facilities.
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