#Smurfit #WestRock #Stock #500s #Performers #Today #Heres
Key takeaways
- Shares of packaging maker Smurfit WestRock were among the best-performing stocks in the S&P 500 on Wednesday.
- Third-quarter results fell short of estimates but reflected expenses related to the merger between Smurfit Kappa and WestRock, which closed in July.
- The acquisition of WestRock and higher volumes in corrugated packaging helped the company double its net sales year over year.
Shares of Smurfit WestRock (SW) rose on Wednesday, marking one of the S&P 500’s best performances, after the packaging manufacturer released its first quarterly result to reflect the July merger between Ireland’s Smurfit Kappa and US-based WestRock.
Given the timing of the deal, the Q2 2024 report only covers Smurfit Kappa’s performance.
The stock, which recently rose nearly 13%, is back in positive territory for the year.
Q3 results provide ‘strong foundation to build on’
The cardboard box maker reported a third-quarter 2024 net loss of $150 million on net sales of about $7.7 billion. Both numbers were below analysts’ consensus estimates.
Despite lower-than-expected headline numbers, the overall result more than doubled from net sales of approximately $2.9 billion recorded in the same period last year, supported by contributions from the WestRock acquisition and strong volumes in corrugated packaging. The company attributed about $500 million of the quarterly loss to expenses and accounting adjustments related to the merger.
Smurfit WestRock reports production in three geographic segments. Although sales remained essentially flat year-over-year for the EMEA and Asia-Pacific segment, the WestRock add-on contributed to higher sales for the North American segment. The Latin American sector achieved sales growth of 48% compared to last year.
CEO Tony Smurfit stressed the impact of the merger on the company’s performance, stressing that “these results form a strong foundation on which to build.”
#Smurfit #WestRock #Stock #500s #Performers #Today #Heres
