Graphic Packaging Holding Company reported net income for second quarter 2020 of $52.1 million, or $0.19 per share, based upon 280.5 million weighted average diluted shares. This compares to second quarter 2019 net income of $63.8 million, or $0.22 per share, based upon 295.7 million weighted average diluted shares.
"We delivered excellent performance in the second quarter as the company adapted to changing demand patterns resulting from the global COVID-19 pandemic. Sales improved 4% year over year driven by acquisitions and net organic sales growth of 1.5%, which was partially offset by a decline in open market paperboard sales," said president and CEO Michael Doss.
The recession-resistant nature of our business was quite apparent during the quarter and I am proud of the work our employees accomplished in successfully serving customers and ensuring continuity of supply globally," added Doss.
Net sales increased 4% to $1,611 million in the second quarter of 2020, compared to $1,552.8 million in the prior year period. The $58.2 million increase was driven by $5.4 million of positive price and $65.9 million of volume/mix.
EBITDA for the second quarter of 2020 was $238.9 million, or $18.3 million lower than the second quarter of 2019. When comparing against the prior year quarter, adjusted EBITDA in the second quarter of 2020 was positively impacted by $5.4 million of higher pricing, $10.4 million of commodity input cost deflation and $15.3 million of increased productivity. These benefits were offset by $24.6 million in planned maintenance outage expenses, $12.9 million of other inflation (primarily labor and benefits) and $2.2 million of unfavorable volume/mix,
Total debt (long-term, short-term and current portion) increased $27.4 million during the second quarter of 2020 to $3,529.3 million compared to the first quarter of 2020.