KapStone Paper and Packaging Corporation's consolidated net sales of $859 million in the 4Q 2017 were $81 million higher than 2016, reflecting higher prices for containerboard and corrugated products, as the company said in the press release received by Lesprom Network.
Net income of $188 million for the 4Q 2017 increased by $169 million compared to the 4Q 2016. The current quarter includes a provisional tax benefit of $144 million associated with the passage of the Tax Cuts and Jobs Act on December 22, 2017. The tax benefit consists of a non-cash adjustment to re-measure deferred income tax liabilities at the new 21% federal statutory income tax rate compared to the prior 35% income tax rate.
Adjusted EBITDA for the 4Q 2017 of $136 million increased by $44 million compared to the 4Q 2016.
Consolidated net sales for the year ended December 31, 2017, were $3,316 million, an increase of 8%, compared to 2016 sales of $3,077 million. The increase was due to higher prices, a better product mix and higher volumes in the paper and packaging segment.
Net income of $244 million for the FY 2017 was higher than 2016's $86 million by $158 million. The increase was mainly due to a provisional tax benefit of $144 million based on the new tax law enacted on December 22, 2017.
Adjusted EBITDA for 2017 of $437 million increased by $53 million compared to 2016.
KapStone Paper and Packaging Corporation is the fifth largest producer of containerboard and corrugated packaging products and is the largest kraft paper producer in the United States.