Graphic Packaging Holding Company Reports Second Quarter 2017 Results
Graphic Packaging Holding Company today reported Net Income for second quarter 2017 of $42.0 million, or $0.14 per share, based on 311.1 million weighted average diluted shares. This compares to second quarter 2016 Net Income of $77.8 million, or $0.24 per share, based on 322.5 million weighted average diluted shares.
Second quarter 2017 Net Income was negatively impacted by $4.4 million (net of a $1.7 million tax benefit) of business combinations and other special charges. When adjusting for these charges, Adjusted Net Income for the second quarter of 2017 was $46.4 million, or $0.15 per diluted share. This compares to second quarter 2016 Adjusted Net Income of $60.1 million or $0.19 per diluted share.
"Our second quarter Adjusted EBITDA met our expectations at $171 million compared to $195 million in the prior year period. Net Tons Sold were up 1.7%, reflecting an acquisition and slightly positive core volumes. We successfully completed our bi-annual maintenance cold outage at the West Monroe, Louisiana mill" said President and CEO Michael Doss. "The quarter was negatively impacted by accelerating commodity input costs, primarily recycled fiber, and the planned downtime costs."
"We are executing price increases to offset the unprecedented recycled fiber input cost inflation and expect margins to improve from our pricing actions during the second half of 2017 and in 2018. Our focus on meeting cash flow commitments, growing cash flow, and returning more of it to stockholders over time has not changed. We returned $43 million to stockholders in the second quarter of 2017 through dividends and share repurchases. We announced the Carton Craft acquisition in mid-June, and completed the transaction on July 10, 2017. We remain committed to a balanced capital allocation strategy, which includes reinvesting in our business to drive strong cash returns on cash invested, strategic acquisitions at compelling post-synergy multiples, and returning cash to stockholders through dividends and share repurchases."