WestRock Company announced results for its fiscal 3Q ended June 30, 2018. The $442 million increase in net sales compared to the prior year quarter was primarily attributable to $129 million of increased Corrugated Packaging segment sales driven principally by higher selling price/mix and $324 million of increased Consumer Packaging segment sales, primarily due to the contribution from the Multi Packaging Solutions International Limited (“MPS”) acquisition.
The $135 million increase in segment income was primarily due to $90 million of increased Corrugated Packaging segment income and $36 million of increased Consumer Packaging segment income. Consumer Packaging’s segment income in the third quarter of fiscal 2017 was reduced by $13 million as a result of an acquisition inventory step-up charge related to the MPS acquisition. Adjusted Segment EBITDA increased 27% compared to the prior year quarter.
“Our WestRock team delivered significant margin and cash flow improvement in the third fiscal quarter, evidence that our strategy, operational performance, and productivity efforts are delivering value for our stockholders,” said Steve Voorhees, CEO. “With our productivity performance in the quarter, we achieved our goal of a run rate of more than $1 billion of synergy and performance improvements. We are on track to achieve our financial goals for the year and are well positioned to build on our success in fiscal 2019.”
WestRock Company is a leading provider of differentiated paper and packaging solutions.