April 27, 2020 Board Converting News

Graphic Packaging Holding Co. Reports First Quarter Net Loss

portantly, we are also taking decisive actions to meet the paperboard packaging needs of the consumer, balance supply and demand to optimize cash flow, all while posi- tioning our business to capture profitable growth consis- tent with the goals we established in our Vision 2025”. Sonoco To Increase Prices On Paperboard Tubes, Cores Hartsville, South Carolina based Sonoco announced that it will be increasing prices for all paperboard tubes and cores sold in the United States and Canada by a minimum of eight percent, effective with shipments on and after Wednesday, May 13, 2020. According to Doug Schwartz, Division Vice President and General Manager, Tubes and Cores, U.S. and Canada, this price increase, which is the first announced change in nearly two years, is necessary to recover rising costs for recycled paperboard, which is the primary raw material used to produce tubes and cores. “Along with rising paper prices, we have experienced continued price escalation in other input costs, which are putting cost pressures on Sonoco that we are simply un- able to absorb,” Schwartz said. “Sonoco has been deemed an “essential supplier” during the COVID-19 pandemic and we take this responsibility seriously. We have taken added steps to ensure our ability to maintain continuity of supply to meet our customers’ critical needs.”

Atlanta, Georgia based Graphic Packaging Holding Com- pany last week reported a Net Loss for first quarter 2020 of $12.7 million, or a net loss per share of $0.04, based upon 288.9 million weighted average diluted shares. This compares to first quarter 2019 Net Income of $57.9 million, or $0.19 per share, based upon 298.2 million weighted av- erage diluted shares. First quarter 2020 Net Income was negatively impacted by a net $103.9 million of special charges, including a net $89.7 million non-cash charge related to the settlement of a U.S. pension plan. When adjusting for these charges, Ad- justed Net Income for the first quarter of 2020 was $91.2 million, or $0.31 per diluted share. This compares to first quarter 2019 Adjusted Net Income of $61.7 million or $0.21 per diluted share. “We had a very strong start to 2020 with positive net or- ganic volume growth of five percent and solid productivity driving meaningful improvement to our key financial met- rics,” said President and CEO Michael Doss. “To date, we have successfully met the increased and changing needs of our customers, while effectively keeping our employees safe and healthy. I am exceptionally proud of the work our teams around the world are doing to meet the essential packaging needs of our customers and the consumer. Im-

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