25 April, 23:23
Graphic Packaging Holding Company reported net income for 1Q 2017 of $37 million, this compares to 1Q 2016 net income of $57.5 million. Net sales increased 2.7% to $1,061.5 million in the 1Q 2017, compared to $1,034.0 million in the prior year period, as the company said in the press release received by Lesprom Network.
The $27.5 million increase was driven by $56.2 million of improved volume/mix related to acquisitions and stable core volumes. The net sales increase was partially offset by $14.9 million of unfavorable foreign exchange rates and $13.8 million of lower pricing.
EBITDA for the 1Q 2017 was $152.3 million, or $30.6 million lower than the 1Q 2016.
"Our 1Q Adjusted EBITDA was lower as expected at $161 million compared to $193 million in the prior year period. Net sales were up 2.7%, reflecting recent acquisitions and stable core volumes, consistent with the trends we experienced in 2016. Operating efficiencies improved during the quarter and we successfully upgraded two headboxes on the number six paper machine at our 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 associated with the upgrade of the two headboxes."
Graphic Packaging Holding Company is a leading provider of paper-based packaging solutions for a wide variety of products to food, beverage and other consumer product companies.