For the third quarter, earnings from continuing operations were $0.77 per share (diluted), up 13 percent compared with $0.68 per share in 2016, primarily driven by improved segment operating profit in Europe and Latin America, and lower interest and tax expense. Net sales were $1.8 billion, an increase of almost 5 percent compared to the prior year third quarter, primarily due to favorable currency translation. Price increased 1 percent on a global basis, while shipments were on par with the prior year. Earnings from continuing operations before income taxes were $172 million, an increase of 12 percent compared with the same period in 2016. Segment operating profit of reportable segments for the third quarter of 2017 was $260 million, an increase of 10 percent compared with prior year. Notable gains were reported in Europe and Latin America which more than compensated for external weakness in North America. Europe benefited from a favorable sales mix, a currency tailwind and the receipt of an energy credit, as expected. The increase in Latin America was driven by a 7 percent increase in shipments including double-digit gains in Brazil and a reduction in total systems cost. Click Read More below for additional information.
KapStone Paper and Packaging Corporation (NYSE:KS) (the “Company” or “KapStone”) is pleased to announce that, yesterday, union members at its Longview, Washington paper mill and box plant, AWPPW Local 153 (“the Union”), voted to ratify and approved a new contract offer. The Union’s bargaining board unanimously supported ratification of the new contract, which expires on May 31, 2024, for the 700-plus members of AWPPW Local 153.
Commenting on the contract ratification, Randy Nebel, President of KapStone Kraft Paper Corporation, said: “We are pleased with the outcome of the vote. The contract is a competitive agreement, both for the Company and our union employees at Longview. It provides us with greater stability at Longview to focus on building an even stronger business for our customers, employees and shareholders.”