By Dean Seal
Graphic Packaging trimmed its full-year adjusted earnings guidance after sales dropped more than expected in the third quarter despite an uptick in volumes.
The maker of cups, boxes and other fiber-based packaging products for consumer goods companies posted a profit of $165 million, or 55 cents a share, compared with $170 million, or 55 cents a share, in the same quarter a year ago.
Stripping out one-time items, adjusted earnings were 64 cents a share. Analysts surveyed by FactSet had been expecting 67 cents a share.
Sales fell 6% to $2.22 billion, below analyst estimates for $2.28 billion, according to FactSet.
The decline was driven by the divestiture of the company's bleached paperboard manufacturing facility in Augusta, Ga., earlier this year, along with falling sales prices in its packaging operation, which offset improved volumes.
Chief Executive Michael Doss said the company has been focusing on margins after previous volume challenges, first from retailer destocking and then from consumer fatigue with high prices.
Graphic Packaging pulled back on its adjusted earning guidance for the year, saying it now expects $2.49 to $2.61 a share instead of $2.65 to $2.85 a share previously.
Write to Dean Seal at dean.seal@wsj.com
(END) Dow Jones Newswires
October 29, 2024 06:48 ET (10:48 GMT)
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