Graphic Packaging Q3 Profit Up, But Misses View - Quick Facts

(RTTNews) - Graphic Packaging Holding Co. (GPK) reported an increase in net income for the third quarter to $44.5 million or $0.13 per share from $40.1 million or $0.10 per share in the same period last year.

The latest quarter's results included an after-tax benefit of $1.6 million primarily related to the sale of certain assets related to the company's flexible plastics business and the sale of its URB mill.

Adjusted net income for the quarter was $42.9 million or $0.12 per share, compared to $42.8 million or $0.11 per share last year. On average, nine analysts polled by Thomson Reuters expected earnings per share of $0.13 per share for the quarter. Analysts' estimates typically exclude one-time items.

Net sales for the quarter increased 5 percent to $1.16 billion $1.10 billion in the year-ago period. Street had a consensus revenue estimate of $1.15 billion.

CEO David Scheible said, "We posted a solid quarter despite a difficult operating environment in our key end-use markets. Strong operating performance more than offset cost inflation and soft demand in core end-markets like beer, soft drink and cereal. Unemployment levels and fuel prices remain higher than most had forecasted, forcing end consumers to continue to tightly manage discretionary spending."

Scheible added that the company expects to achieve about $100 million in performance benefits for the full year.