By Rob Curran
Graphic Packaging Holding, an Atlanta-based maker of paperboard and other paper packaging materials, experienced a decrease in net income and sales in the third quarter. The drop was attributed to lower demand as customers worked through their inventory of packaging products.
For the quarter ending in September, Graphic Packaging recorded earnings of $170 million, or 55 cents per share, compared to $193 million, or 62 cents per share, in the same period last year. Adjusted for certain one-time items, the company’s third-quarter profit stood at 74 cents per share, surpassing the average analyst estimate of 71 cents per share, according to FactSet data.
Despite the better-than-expected adjusted profit, third-quarter sales declined by 4.2% to $2.35 billion. This figure fell short of the average Wall Street estimate of $2.47 billion.
Manufacturing Efficiency Measures
In a bid to improve manufacturing efficiency, Graphic Packaging announced its plans to close down its K3 coated recycled paperboard machine at its Kalamazoo plant in early October.