Graphic Packaging Reports 2Q 2015 Results

Graphic Packaging Holding Company reported net income for second quarter 2015 of $57.6 million, or $0.17 per share, based upon 330.9 million weighted average diluted shares. This compares to the second quarter 2014 net loss of $40 million, or $(0.12) per share, based on 328.7 million weighted average diluted shares.
 
Net sales decreased 5.3% to $1,057.1 million in the second quarter of 2015, compared to $1,116.7 million in the prior year period. Excluding $107.7 million of sales in the prior year period from divested businesses, adjusted net sales increased $48.1 million or 4.8%. The increase was driven by $82.7 million of improved volume/mix, primarily related to acquisitions. The sales increase was partially offset by $34.6 million of unfavorable foreign exchange rates and modestly lower pricing.
 
“We delivered on our expectations despite continued soft demand in key end-markets,” said David Scheible, chairman and CEO. “Although market volumes remain challenging, we continue to post strong results as adjusted EBITDA margin was up 110 basis points over last year to 18.2%. The increase was driven by our ongoing asset optimization strategies, acquisition integration and strong operating performance. Our global supply chain has been extremely efficient as we produced and sold more net tons through our integrated system versus second quarter last year. Our strong performance has generated over $40 million in productivity benefits through the first six months of the year.”
 
EBITDA for second quarter 2015 was $187.1 million, or $167.4 million higher than the second quarter of 2014. Total net debt declined $64.9 million during the second quarter 2015 to $1,997.6 million.