Graphic Packaging Holding Company reported net income for 3Q 2018 of $94.3 million, or $0.30 per share, based upon 311.5 million weighted average diluted shares. This compares to 3Q 2017 net income of $47.3 million, or $0.15 per share, based on 310.9 million weighted average diluted shares, as the company says in the press release received by Lesprom Network.
Net sales increased 35% to $1,530 million in the 3Q 2018, compared to $1,137.6 million in the prior year period. The $392.4 million increase was driven by $352.7 million of revenue from the SBS mill and foodservice assets, $28.2 million of improved volume/mix related primarily to acquisitions, and $17.6 million of higher pricing. These benefits were partially offset by $6.1 million of unfavorable foreign exchange.
EBITDA for the 3Q 2018 was $282.7 million, or $98.6 million higher than the 3Q 2017. After adjusting both periods for business combinations and other special charges and credits, Adjusted EBITDA increased 36% to $256.3 million in the 3Q 2018 from $188.3 million in the 3Q 2017. When comparing against the prior year quarter, Adjusted EBITDA in the 3Q 2018 was positively impacted by $62.5 million of Adjusted EBITDA from the SBS mill and foodservice assets, $17.6 million of higher pricing, and $8.9 million of improved net operating performance.
"We are encouraged by our overall progress in the 3Q. Specifically, the integration of the SBS mill and foodservice assets is on track and the pricing to commodity input cost relationship for the CRB and CUK mill and global converting assets turned $6 million positive during the quarter. We announced the Letica Foodservice assets acquisition, which closed on September 30th, and will extend our leading position in the growing North America paperboard-based foodservice market. We also invested $30 million to install a curtain coater on our Macon No. 2 CUK paperboard machine, which we expect will add $10 million of annualized EBITDA," said President and CEO Michael Doss.
Graphic Packaging Holding Company is a leading provider of paper-based packaging solutions for a wide variety of products to food, beverage, foodservice, and other consumer products companies.
