WestRock is executing its differentiated strategy with financial strength and substantial liquidity. Given the uncertainties associated with the severity and duration of the COVID-19 pandemic, the Company is focused on meeting the needs of its customers and supporting the health, safety and well-being of its teammates, the company says.
Third quarter of fiscal 2020 financial highlights include:
- Net sales of $4.2 billion decreased by 9.7% compared to the prior year quarter
- Generated net cash provided by operating activities of $740 million
- More than $3.2 billion of availability under long-term committed credit facilities and cash and cash equivalents at June 30, 2020
“Our results for the fiscal third quarter, including our strong cash flow and debt reduction, demonstrate why I am so proud of how the WestRock team is working closely with our customers to help them meet changing demand across a variety of end markets,” says CEO Steve Voorhees. “We are taking the necessary steps to help our teammates work safely during the pandemic. WestRock remains well positioned with the capabilities, cash flow, liquidity and team to meet the challenges ahead and support our customers, teammates and communities.”
Net sales decreased $454 million compared to the prior year quarter. Corrugated Packaging segment and Consumer Packaging segment net sales declined $344 million and $98 million, respectively, primarily due to lower selling price/mix on sales, lower volumes, including the impact of COVID-19, and unfavorable foreign currency impact.
Segment income decreased $162 million compared to the prior year quarter. Corrugated Packaging segment income decreased $165 million and Consumer Packaging segment income increased $4 million.
Restructuring and Other Items
Restructuring and other items during Q3 FY2020 included the following pre-tax costs:
- $7 million of restructuring costs, primarily related to severance and other employee costs and plant consolidations
- $2 million of integration costs, primarily related to the fiscal 2019 acquisition of KapStone Paper and Packaging Corporation (“KapStone”)