Smurfit Westrock Q2 Earnings Miss Estimates, Sales Dip Y/Y
Smurfit Westrock Plc (NYSE: SW) reported adjusted earnings of 69 cents per share in second-quarter 2024, which missed the Zacks Consensus Estimate of 75 cents. The bottom line was down 22.5% from adjusted earnings of 89 cents in the year-ago quarter.
Smurfit Westrock was formed by the merger of two major paper and packaging industry players, Smurfit Kappa and WestRock, on Jul 5, 2024. With the completion of the merger, subsequent to the end of the second quarter, Smurfit Westrock stated that the reported results pertain to Smurfit Kappa Group plc and not to WestRock. Results for the combined company will be reported from the third quarter of 2024.
Net income was $132 million (51 cents per share), down 51% from $267 million in the year-ago quarter. This was primarily due to lower sales and transaction-related expenses of $60 million associated with the Smurfit Westrock combination, which was partially offset by a $12 million decrease in the costs of goods sold attributed to lower raw material and energy costs.
Net sales declined 3.5% year over year to around $3 billion. The top line lagged the Zacks Consensus Estimate of $7.9 billion (which included revenues from WestRock). Smurfit Kappa witnessed a 3.1% increase in corrugated volumes. On a shipments per day basis, volume growth was 1.1%. A net positive foreign currency impact of $28 million and a $4 million positive contribution from acquisitions aided revenues. However, these gains were …
Full story available on Benzinga.com
