Paper-based packaging solutions provider Graphic Packaging has reported a net income of $94.3m, or $0.30 per share, for third quarter of 2018, compared to $47.3m, or $0.15 per share, for the same period last year.
Image: Graphic Packaging’s net income increases in Q3. Photo: courtesy of sscreations at FreeDigitalPhotos.net.
The company said third quarter 2018 net income was positively impacted by a net $25.2m of special charges and credits.
Adjusted net income for the third quarter of 2018 was $69.1m, or $0.22 per diluted share.
Net sales increased 35% to $1.53bn in Q3, compared to $1.13bn in the prior year period.
The $392.4m increase was driven by $352.7m of revenue from the SBS mill and foodservice assets, $28.2m of improved volume/mix related primarily to acquisitions, and $17.6m of higher pricing.
Earnings before interest, tax, depreciation and amortization (EBITDA) for Q3 was $282.7m, compared to $184.1m reported in the third quarter of 2017.
The company said the integration of the SBS mill and foodservice assets is on track and the pricing to commodity input cost relationship for the CRB and CUK mill and global converting assets turned $6m positive during the quarter.
US-based Graphic Packaging closed the Letica Foodservice assets acquisition last month to expand its position in the growing North America paperboard-based foodservice market.
The company also made a $30m investment to install a curtain coater on its Macon No. 2 CUK paperboard machine, which is expected to add $10m of annualized EBITDA.
Graphic Packaging president and CEO Michael Doss said the company successfully implemented a second open market price increase this year for its CUK and SBS paperboard during the quarter.
“We expect the successful open market paperboard price increases we achieved across our CRB, CUK, and SBS paperboard grades over the course of 2018 will drive strong pricing momentum as we turn to 2019.
“Despite the difficult commodity inflation environment, we are well positioned to generate continued profitability improvement driven by our pricing, new product development, and productivity initiatives.”
Graphic Packaging produces folding cartons and paper-based foodservice products in the US. The company also provides paper-based packaging solutions for a wide variety of products to food, beverage, foodservice, and other consumer products companies.