Investor Presentaiton
Q1 FY17 Corrugated Packaging Results
Financial Performance
($ in millions, except percentages)
Segment Sales
Adj. Segment Income (1)
$1,964
$181
North America:
•
Q1 FY17
Q1 FY16
$1,944
$142
Adj. Segment EBITDA (1)
$287
$325
% Margin (1)
15.3%
17.1%
North America EBITDA Margin (1)
15.8%
17.7%
Brazil EBITDA Margin (1)
24.4%
24.8%
•
•
Box shipments up +2.2% yoy on a per day basis
Successfully implementing containerboard price increase;
realized $14 million in the quarter
Strong supply and demand fundamentals; 115K tons of
maintenance downtime; no economic downtime
• Cost inflation impact
Grupo Gondi (Unconsolidated Joint Venture) (2):
Foreign exchange translation impact to Q1 FY17 sales and segment income is +$15
million and +$2 million, respectively
•
5
$325
Adjusted Segment EBITDA (1) ($ in millions)
(12)
42
$287
(13)
(34)
(17)
•
JV sales of $186 million; EBITDA margins of almost 20% (1)
WestRock supplied 59K tons of containerboard to Gondi
Brazil:
.
Growth in box volumes and strong execution yoy; box volumes
up 7% yoy as compared to industry decline of 4%
Segment EBITDA Key Bridge Variances:
•
•
•
•
•
Volume: N.A. shipments up 18K tons yoy (excl. Hurricane
Matthew tons)
Price / Mix: Price increase implementation on track, with box
price increase not yet offsetting last year's pricing declines;
executing on export price increases
E/M/F: Increases in recycled fiber, chemicals, and natural gas;
only partially offset by lower virgin fiber prices
Productivity: Realizing benefits from mill footprint optimization,
process improvements and purchasing initiatives
Hurricane: 33K tons of lost volume
Q1
FY16
Volume Price / Mix
E/M/F
Wage
and
Prod. Hurricane
FX &
Q1
Other
FY17
Other
Inflation
19 1)
2)
Non-GAAP Financial Measure. See Use of Non-GAAP Financial Measures and Reconciliations in Appendix.
We hold a 25% ownership interest in Grupo Gondi.
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