On July 1, 2015, Rock-Tenn Company and MeadWestvaco Corporation (MWV) completed a strategic combination of their respective businesses. After completion of this transaction, RockTenn and MeadWestvaco became wholly owned subsidiaries of WestRock.
Net sales for WestRock for the quarter ended September 30, 2015, were $3.87 billion and segment income was $415 million, excluding the impact of $72 million of inventory that was stepped up to fair value in purchase accounting, net of related LIFO expense, which was charged to cost of goods sold when sold in the quarter ended September 30, 2015, compared to combined segment income of $518 million in the prior year quarter. The majority of the inventory acquired in the transaction had been sold by September 30, 2015.
WestRock earnings were $0.44 per diluted share, including $112 millionof pre-tax restructuring and other costs, for the quarter ended September 30, 2015.
The pre-tax restructuring costs included $68 million of integration expenses, including severance, $31 million of merger and acquisition expenses and $13 million of aggregate plant closure and divestiture costs. Adjusted earnings were $0.93 per diluted share.
"The WestRock team performed well and delivered solid earnings and cash flow in our first quarter as a new company," said Steve Voorhees, CEO of WestRock, "We are driving value from the merger by achieving annualized run rate synergies and performance improvements ahead of our expectations and by providing a broad range of paper and packaging solutions to help our customers succeed in their markets".
WestRock aspires to be the premier partner and unrivaled provider of paper and packaging solutions in consumer and corrugated markets.
