For the three months ended June 30, 2019, WestRock reported sales of $4.69 billion, up $552.5 million from the same period in 2018. Net sales increased $553 million compared to the prior year quarter, primarily due to $628 million of increased Corrugated Packaging segment net sales mainly due to the acquisition of KapStone Paper and Packaging Corporation and higher selling prices for domestic containerboard and corrugated containers, partially offset by declining export prices. Segment income was $485.3 million, up $27.4 million from 3Q 2018.
Net cash provided by operating activities was $735 million in the third quarter of fiscal 2019 compared to $662 million in the prior year quarter.
The company earned $0.98 per diluted share and $1.11 of adjusted earnings per diluted share compared to $1.03 per diluted share and $1.09 of adjusted earnings per diluted share in the prior year quarter.
The Corrugated Packaging segment delivered a segment EBITDA margin of 20.6% and a North American adjusted segment EBITDA margin of 23.1%, an increase of 20 basis points and 110 basis points, respectively, compared to the prior year quarter.
Achieved $80 million of run-rate synergies and performance improvements towards its target of achieving $200 million for the KapStone acquisition by the end of fiscal 2021. Total debt declined $257 million and net debt declined $282 million compared to the second quarter of fiscal 2019.
“The WestRock team executed well in the third fiscal quarter,” said CEO Steve Voorhees. “We remain focused on generating organic growth, maximizing the full potential of our broad, comprehensive product portfolio and delivering on our productivity and cash flow generation goals.”
Total debt was $10.5 billion at June 30, 2019, or $10.3 billion excluding $234 million of non-cash acquisition related step-up. Total debt declined $257 million and net debt declined $282 million in the third quarter of fiscal 2019.