American Forest & Paper Association Releases February 2018 Containerboard Report

Greif, Inc. announced an agreement to sell 69,200 acres of timberlands in southwest Alabama to Weyerhaeuser Company for approximately $149 million in cash. Proceeds from the transaction will be applied to debt repayment. While this transaction is subject to tax, the Company has tax losses from other transactions which will substantially mitigate the tax associated with this land sale. Pete Watson, Greif’s President and Chief Executive Officer, commented, “We are pleased to enter into this agreement with Weyerhaeuser Company. Proceeds from the transaction will help to de-lever our balance sheet and accelerate the transfer of Greif’s enterprise value from debt to equity holders in line with our stated financial priorities.”

International technology group ANDRITZ will rebuild a paper machine at Holmen Paper’s Braviken mill in Sweden to provide maximum production flexibility. Start-up is planned for autumn 2024. This order follows Holmen Paper’s recent successful entry into the packaging market with an innovative lightweight corrugated board product. The rebuild of PM52 will enable Holmen Paper to increase the production of fluting for corrugated boxes. ANDRITZ will implement a sophisticated technology concept allowing to easily switch production between the different paper grades.

The company reported net sales of $429.7 million for the second quarter of 2017, down 1.6% compared to net sales of $436.7 million for the second quarter of 2016. Net earnings determined in accordance with generally accepted accounting principles, or GAAP, for the second quarter of 2017 were $8.0 million, or $0.48 per diluted share, compared to net earnings of $20.9 million, or $1.21 per diluted share, for the second quarter of 2016.