WestRock Reports Fiscal 3Q 2020 Results

WestRock Company announced results for its fiscal third quarter ended June 30, 2020.

Third quarter of fiscal 2020 financial highlights included net sales of $4.2 billion, a decrease of 9.7% compared to the prior year quarter. Segment EBITDA margins improved sequentially across both segments in a rapidly changing economic environment.

WestRock generated net cash provided by operating activities of $740 million and has more than $3.2 billion of availability under long-term committed credit facilities and cash and cash equivalents on June 30, 2020.

“Our results for the fiscal third quarter, including our strong cash flow and debt reduction, demonstrate why I am so proud of how the WestRock team is working closely with our customers to help them meet changing demand across a variety of end markets,” said CEO Steve Voorhees.

Compared to the quarter ending June 30, 2019, net sales decreased $454 million. Corrugated Packaging segment and Consumer Packaging segment net sales declined $344 million and $98 million, respectively, primarily due to lower selling price/mix on sales, lower volumes, including the impact of COVID-19, and unfavorable foreign currency impact.

Segment income decreased $162 million compared to the prior year quarter. Corrugated Packaging segment income decreased $165 million and Consumer Packaging segment income increased $4 million.

Net cash provided by operating activities was $740 million in the third quarter of fiscal 2020 compared to $735 million in the prior year quarter. Total debt was $10.05 billion on June 30, 2020.