Breaking News
0

WestRock Provides Financial Update Following Hurricane Dorian

By Zacks Investment ResearchStock MarketsSep 19, 2019 11:04PM ET
www.investing.com/analysis/westrock-provides-financial-update-following-hurricane-dorian-200466620
WestRock Provides Financial Update Following Hurricane Dorian
By Zacks Investment Research   |  Sep 19, 2019 11:04PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

WestRock Company (NYSE:WRK) had idled three of its containerboard mills in the southeastern United States that lay in the areas of mandatory evacuation as a result of Hurricane Dorian. Consequently, the company anticipates a pre-tax impact of approximately $9 million on fourth-quarter fiscal 2019 results, which includes costs to idle and restore the mills to operation, and supply chain impacts. The company stated that these mills have begun operations as evacuation orders have been lifted.

Last year, WestRock’s operations at mills located in Florence, SC and Panama City, FL were disrupted by hurricanes, resulting in lost mill production and incurrence of damages, supply chain disruptions and increased input costs.

During the third-quarter conference call, WestRock had projected adjusted segment EBITDA for the fourth quarter of fiscal 2019 to be between $880 million and $925 million. The company reported adjusted segment EBITDA of $802 million in the last year's fourth fiscal quarter. In the current quarter, benefits from higher sequential seasonal volumes across both segments will be more than offset by the flow through of previously published containerboard and kraft paper price declines, and lower containerboard export prices. However, lower recycled fiber, virgin fiber, energy and freight costs, and productivity improvement will bolster EBITDA.

Higher maintenance downtime will impact fourth-quarter results on a year-over-year basis. For the Corrugated Packaging segment, the company anticipates maintenance downtime at 35,000 tons in fourth-quarter fiscal 2019. In the Consumer Packaging segment, maintenance downtime is expected at around 5,000 tons. There was no maintenance downtime in fourth quarter fiscal 2018. Overall for the Corrugated Packaging segment, maintenance downtime will be 278,000 tons in fiscal 2019, much higher than 233,000 tons in fiscal 2018. For the Consumer Packaging segment, maintenance downtime is estimated at 118,000 tons compared with 47,000 tons in fiscal 2018.

The company’s earlier guidance for fiscal 2019 adjusted EBITDA was at around $3.25 billion. The Zacks Consensus Estimate for the fourth quarter fiscal’s earnings is at $1.23, reflecting a year-over-year decline of 4.65%. The same for fiscal 2019 is at $3.95, indicating a decline of 3.42% year over year.

Execution of its capital allocation strategy and investment in growth projects will drive the company forward. The KapStone acquisition will enhance corrugated packaging business and add complementary products.

Price Performance

Shares of WestRock have slumped 36.8% in the past year, compared with the industry’s decline of 43.4%.

WestRock currently carries a Zacks Rank #3 (Hold).

Stocks to Consider

Some better-ranked stocks in the basic materials space are Kinross Gold Corporation (NYSE:KGC) , Alamos Gold Inc. (TSX:AGI) and Arconic Inc (NYSE:ARNC) , all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Kinross has an outstanding expected earnings growth rate of 155.7% for 2019. The company’s shares have surged 68% in the past year.

Alamos Gold has projected earnings growth rate of 324% for the current year. The company’s shares have rallied 38% in a year’s time.

Arconic has an estimated earnings growth rate of 50% for the current year. Its shares have moved up 20% in the past year.

Just Released: Zacks’ 7 Best Stocks for Today

Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.6% per year.

These 7 were selected because of their superior potential for immediate breakout.

See these time-sensitive tickers now >>



Alamos Gold Inc. (AGI): Free Stock Analysis Report

Kinross Gold Corporation (KGC): Free Stock Analysis Report

Arconic Inc. (ARNC): Free Stock Analysis Report

WestRock Company (WRK): Free Stock Analysis Report

Original post
WestRock Provides Financial Update Following Hurricane Dorian
 
WestRock Provides Financial Update Following Hurricane Dorian

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email