Ink World Staff05.08.20
WestRock Company announced results for its fiscal second quarter ended March 31, 2020, and provided an update related to the impact of the COVID-19 pandemic on the company.
Second quarter of fiscal 2020 financial highlights included net sales of $4.45 billion, a decrease of 3.7% compared to the prior year quarter. The company noted strong segment margins in the rapidly changing economic environment.
WestRock is executing its differentiated strategy with financial strength and substantial liquidity. Given the uncertainties associated with the severity and duration of COVID-19, the company is focused on meeting the needs of WestRock’s customers, supporting the health, safety and well-being of its teammates, and further building on its foundation of financial strength by:
“In the second quarter, WestRock delivered solid results with improved demand in select key markets as the pandemic impacted consumer buying habits, especially in March. We are adapting quickly to the uncertain economic and market demand conditions and taking steps that we expect will provide an additional $1 billion in cash available for debt reduction through fiscal 2021.”
Second quarter of fiscal 2020 financial highlights included net sales of $4.45 billion, a decrease of 3.7% compared to the prior year quarter. The company noted strong segment margins in the rapidly changing economic environment.
WestRock is executing its differentiated strategy with financial strength and substantial liquidity. Given the uncertainties associated with the severity and duration of COVID-19, the company is focused on meeting the needs of WestRock’s customers, supporting the health, safety and well-being of its teammates, and further building on its foundation of financial strength by:
- Providing one-time recognition awards to the company’s manufacturing and operations teammates in the third quarter of fiscal 2020;
- Continuing to match the company's supply with its customers’ demand;
- Decreasing salaries and retainers up to 25% for the company’s senior executive team and board of directors in addition to reducing discretionary expenses;
- The company expects to use company stock to pay its annual incentive and company funded 401(k) contributions in 2020;
- Reducing fiscal 2020 capital investments by approximately $150 million, to a level of $950 million; reduce fiscal 2021 capital investments to a range of $600 to $800 million;
- Resetting its quarterly dividend to $0.20 per share for an annual rate of $0.80 per share.
“In the second quarter, WestRock delivered solid results with improved demand in select key markets as the pandemic impacted consumer buying habits, especially in March. We are adapting quickly to the uncertain economic and market demand conditions and taking steps that we expect will provide an additional $1 billion in cash available for debt reduction through fiscal 2021.”