Smurfit Kappa notes the announcement released on the evening of 6 March 2018 by International Paper Company setting out the price of the unsolicited and highly opportunistic proposal that was originally made to the Board of Smurfit Kappa on 23 February 2018 and rejected in the Group’s announcement of 6 March 2018. The Board of Smurfit Kappa has already carefully considered, with its financial advisers, the Proposal in detail and has unanimously rejected it on the basis that it fails entirely to reflect the Group’s superior prospects as an independent business and represents a valuation multiple significantly below recent comparable transactions. Shareholders are strongly advised to take no action. This announcement is made without the consent of International Paper. Click Read More below for additional information.
Second Quarter Highlights include (all results compared to the second quarter of 2018 unless otherwise noted):
•Net sales increased by $245.0 million to $1,213.3 million.
•Gross profit increased by $53.4 million to $248.7 million.
•Net income of $13.6 million or $0.23 per diluted Class A share decreased compared to net income of $45.1 million or $0.77 per diluted Class A share. Net income, excluding the impact of adjustments(1), of $47.6 million or $0.81 per diluted Class A share increased compared to net income, excluding the impact of adjustments, of $44.7 million or $0.76 per diluted Class A share. Adjusted EBITDA(2)increased by $38.7 million to $162.0 million.
•Net cash provided by operating activities increased by $4.0 million to $62.2 million. Adjusted Free Cash Flow(3) increased by $16.2 million to $46.1 million.
•Completed the acquisition of Caraustar Industries, Inc. (“Caraustar”), on February 11, 2019 and included the results of Caraustar in the Company’s financial results under the Paper Packaging & Services segment since that date.
•Identified $15.0 million of new estimated run-rate synergies related to the Caraustar acquisition. The company now estimates that it will be able to achieve at least $60.0 million of run rate synergies over the 36 months from deal close.
“Greif produced solid financial results in fiscal second quarter 2019 despite the continuation of trade-related market softness in parts of our global Rigid Packaging segment and a more challenging demand environment in our Paper Packaging segment in the U.S.,” said Pete Watson, Greif’s President and Chief Executive Officer. “Second quarter Adjusted EBITDA rose by roughly 31.0 percent versus the prior year quarter, while Class A earnings per share, excluding the impact of adjustments, increased by more than 6.5 percent.”
“We completed the Caraustar acquisition during the quarter and are currently integrating these operations in a disciplined manner. I am pleased with the energy and pace of the integration, but I am most impressed with how well our teams have come together. Through their collective efforts, the combined team has uncovered a variety of operational enhancements and new synergies not previously identified during the due diligence process.”
“We have revised our fiscal 2019 guidance slightly higher, despite expected continuation of market demand challenges for the remainder of the fiscal year. Looking beyond 2019, the long term fundamentals for our business remain favorable as we integrate Caraustar into our business and advance ongoing value optimization activities in our global portfolio. Our team remains focused on delivering exceptional value for our shareholders and customers.”
more detail at: http://investor.greif.com/press-releases/press-release-details/2019/Greif-Reports-Second-Quarter-2019-Results/default.aspx