Westrock has reported a consolidated net income of $203.1m for the third quarter (Q3) of 2023, representing a decline of 46.5% from $379.8m in 2022.

The net income attributable to common stockholders, after excluding net income attributable to non-controlling interests, was $202m, down by 46.5% from $377.9 in Q3 2022.

The diluted earnings per share for the quarter, which ended 30 June 2023, stood at $0.79 versus $1.47 in Q3 last year.

WestRock has attributed this decrease in net income to higher restructuring costs, higher net interest and business systems transformation expenses, increased non-cash pension costs, increased economic downtime, and lower volumes.

However, WestRock added these increased expenses were partly offset by improved cost savings and a higher selling price/mix and contribution from its Mexico acquisition.

WestRock’s Q3 net sales stood at $5.12bn, a 7.2% decline from $5.51bn in the prior year’s period.

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The company said this decrease in net sales was mainly due to lower sales in its Global Paper segment, partly offset by an increase in its Corrugated Packaging business sales.

Consolidated adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) was down by 20.2% to $801.9m, from $1.005bn in Q3 2022.

This decline was driven by a 55.6% drop in adjusted EBITDA to $177m in WestRock’s Global Paper segment, partly offset by 11.6% growth in adjusted EBITDA to $429.7m in its Corrugated Packaging segment.

The company has also included all its operations in Mexico, including a former joint venture after WestRock’s December 2022 consolidation or ‘Mexico Acquisition’, under Corrugated Packaging.

WestRock CEO David B Sewell said: “We delivered impressive results under challenging market conditions.

“Our accelerated transformation strategy is exceeding expectations. We expect to exit the year with a cost-savings run rate of over $450m.

“We remain focused on partnering with our customers, streamlining our portfolio, investing in our assets and further reducing costs.”