WestRock Reports Reduced Q2 Sales
Norcross, Georgia based WestRock Company has an- nounced results for its fiscal second quarter ended March 31, 2020, and provided an update related to the impact of the COVID-19 pandemic on the company. Net sales of $4.45 billion decreased by 3.7 percent compared to the prior year quarter. Corrugated Packag- ing segment net sales declined $108 million, primarily due to lower corrugated selling price/mix, partially offset by higher volumes. Consumer Packaging segment net sales declined $52 million, primarily due to lower selling price/ mix, lower volumes and the unfavorable impact of foreign currency. Segment income decreased $61 million compared to the prior year quarter. Corrugated Packaging segment in- come decreased $66 million and Consumer Packaging segment income increased $6 million. Given the uncertainties associated with COVID-19, the company is building on its financial strength by providing one-time recognition awards to manufacturing and op- erations teammates, matching the supply with customer demand and decreasing salaries and retainers up to 25 percent for the senior executive team and board of direc- tors. The company expects to use company stock to pay its annual incentive and company funded 401(k) contribu- tions in 2020. WestRock has announced a reduction in fiscal 2020 capital investments by approximately $150 million, to a level of $950 million and a reduction in fiscal 2021 capital investments to a range of $600 to $800 million. It is also resetting its quarterly dividend to $0.20 per share for an annual rate of $0.80 per share. IP Donates 10,000 Boxes To North Carolina Food Bank According to local media reports, Memphis, Tennes- see based International Paper (IP) donated 10,000 cor- rugated boxes to the Food Bank of Central and Eastern North Carolina (FBCENC). Boxes were delivered to the FBCENC headquarters and distribution center in Raleigh, where they were packaged and distributed to five other distribution centers across the 34-county service area. They will be picked up by nonprofit partners for their cli- ents and families. Each family typically receives one box filled with enough food for 20 meals, supporting 10,000 families or individuals in a crisis. “Food insecurity is a critical problem in our local com- munities and the COVID-19 pandemic has added to an already existing issue,” said Adam Miklos, Mill Manager at IP’s New Bern, North Carolina, mill. “We are happy to continue our collaboration with FBCENC as they work to meet the increased need during this pandemic.”
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May 18, 2020
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