WestRock Company (NYSE:WRK), a leading provider of differentiated paper and packaging solutions, today announced results for its fiscal second quarter ended March 31, 2020, and provided an update related to the impact of the COVID-19 pandemic on the Company.
Second quarter of fiscal 2020 financial highlights include:
•Net sales of $4.45 billion decreased by 3.7% compared to the prior year quarter
•$0.57 per diluted share and $0.67 of adjusted earnings per diluted share compared to $0.62 per diluted share and $0.80 of adjusted earnings per diluted share in the prior year quarter
•Strong segment margins in rapidly changing economic environment
•In excess of $2.5 billion of availability under long-term committed credit facilities and cash and cash equivalents at March 31, 2020
WestRock is executing its differentiated strategy with financial strength and substantial liquidity. Given the uncertainties associated with the severity and duration of COVID-19, the Company is focused on meeting the needs of WestRock’s customers, supporting the health, safety and well-being of its teammates, and further building on its foundation of financial strength by:
•Providing one-time recognition awards to the Company’s manufacturing and operations teammates in the third quarter of fiscal 2020
•Continuing to match the Company’s supply with its customers’ demand
•Decreasing salaries and retainers up to 25% for the Company’s senior executive team and board of directors in addition to reducing discretionary expenses
•The Company expects to use company stock to pay its annual incentive and company funded 401(k) contributions in 2020
•Reducing fiscal 2020 capital investments by approximately $150 million, to a level of $950 million; reduce fiscal 2021 capital investments to a range of $600 to $800 million
•Resetting its quarterly dividend to $0.20 per share for an annual rate of $0.80 per share
“I am incredibly proud of the WestRock team that is focused every day on ensuring that the paper and packaging needed to keep critical supply chains operating during the pandemic are available for our customers and our communities,” said Steve Voorhees, chief executive officer. “With operations around the world, we have been working steadily to help our team stay safe by implementing enhanced protection and sanitization measures across our company. We are relentlessly focused on ensuring the health and safety of our teammates.
“In the second quarter, WestRock delivered solid results with improved demand in select key markets as the pandemic impacted consumer buying habits, especially in March. We are adapting quickly to the uncertain economic and market demand conditions and taking steps that we expect will provide an additional $1 billion in cash available for debt reduction through fiscal 2021. We are confident in our differentiated strategy and value proposition, and believe these steps will ensure that WestRock remains well positioned for long-term success.”
details at: https://ir.westrock.com/press-releases/press-release-details/2020/WestRock-Reports-Fiscal-2020-Second-Quarter-Results/default.aspx