Graphic Packaging Holding Company Comments on Operating Conditions and Updates Full-Year 2024 Outlook
Graphic Packaging Holding Company (NYSE: GPK), a global leader in sustainable consumer packaging, has updated its full-year 2024 outlook due to recent operational challenges. Severe weather conditions in July affected production at two paperboard manufacturing facilities, while an electrical substation damage in August disrupted operations at a third facility. These events are expected to reduce Adjusted EBITDA by $20 million to $25 million in the third quarter.
As a result, the company now anticipates full-year 2024 results to fall below the midpoint of its previously announced guidance ranges: $1,730 million to $1,830 million for Adjusted EBITDA and $2.65 to $2.85 for Adjusted EPS. Despite these setbacks, Graphic Packaging reports that all affected facilities have resumed normal operations, and customer service levels were not impacted.
Graphic Packaging Holding Company (NYSE: GPK), un leader globale nel packaging sostenibile, ha aggiornato le sue previsioni per l'intero anno 2024 a causa di recenti sfide operative. Condizioni meteorologiche severe a luglio hanno influenzato la produzione in due stabilimenti di produzione di cartone, mentre un danno a una sottostazione elettrica ad agosto ha interrotto le operazioni in un terzo stabilimento. Ci si aspetta che questi eventi riducano l'Adjusted EBITDA di 20 milioni a 25 milioni di dollari nel terzo trimestre.
Di conseguenza, l'azienda prevede ora che i risultati per l'intero anno 2024 cadranno sotto il punto medio delle precedenti previsioni annunciate: 1.730 milioni a 1.830 milioni di dollari per l'Adjusted EBITDA e 2,65 a 2,85 per l'Adjusted EPS. Nonostante queste difficoltà, Graphic Packaging riporta che tutti gli stabilimenti interessati hanno ripreso le normali operazioni e i livelli di servizio al cliente non sono stati influenzati.
Graphic Packaging Holding Company (NYSE: GPK), un líder global en empaques sostenibles, ha actualizado su perspectiva para el año completo 2024 debido a recientes desafíos operativos. Condiciones meteorológicas severas en julio afectaron la producción en dos instalaciones de fabricación de cartón, mientras que un daño en una subestación eléctrica en agosto interrumpió las operaciones en una tercera instalación. Se espera que estos eventos reduzcan el EBITDA ajustado en $20 millones a $25 millones en el tercer trimestre.
Como resultado, la compañía ahora anticipa que los resultados del año completo 2024 estarán por debajo del punto medio de los rangos de orientación previamente anunciados: $1,730 millones a $1,830 millones para el EBITDA ajustado y $2.65 a $2.85 para las ganancias por acción ajustadas. A pesar de estos contratiempos, Graphic Packaging informa que todas las instalaciones afectadas han reanudado operaciones normales y los niveles de servicio al cliente no se vieron afectados.
그래픽 패키징 홀딩 컴퍼니(NYSE: GPK)는 지속 가능한 소비자 포장의 글로벌 리더로서 최근의 운영 문제로 인해 2024년 전체 연도 전망을 업데이트했습니다. 심각한 기상 조건이 7월에 두 개의 판지 제조 시설의 생산에 영향을 미쳤고, 8월에는 전기 변전소의 손상으로 세 번째 시설의 운영이 중단되었습니다. 이러한 사건들은 세 번째 분기 동안 2천만 달러에서 2천5백만 달러까지의 조정 EBITDA 감소를 초래할 것으로 예상됩니다.
이에 따라, 회사는 2024년 전체 연도 결과가 이전에 발표한 예측 범위의 중간값 아래로 떨어질 것으로 예상하고 있습니다: 조정 EBITDA는 17억 3천만 달러에서 18억 3천만 달러, 조정 주당 순이익은 2.65달러에서 2.85달러입니다. 이러한 어려움에도 불구하고 그래픽 패키징은 영향을 받은 모든 시설이 정상 운영을 재개했다고 보고하며, 고객 서비스 수준은 영향을 받지 않았다고 밝혔습니다.
Graphic Packaging Holding Company (NYSE: GPK), un leader mondial dans l'emballage durable pour les consommateurs, a mis à jour ses prévisions pour l'année complète 2024 en raison de récents défis opérationnels. Des conditions météorologiques sévères en juillet ont affecté la production de deux installations de fabrication de carton, tandis qu'un dégât dans une sous-station électrique en août a perturbé le fonctionnement d'une troisième installation. Ces événements devraient réduire l'EBITDA ajusté de 20 millions à 25 millions de dollars au cours du troisième trimestre.
En conséquence, l'entreprise s'attend désormais à ce que les résultats de l'année 2024 soient en dessous du point médian des prévisions préalablement annoncées : 1,730 millions à 1,830 millions de dollars pour l'EBITDA ajusté et 2,65 à 2,85 pour le BPA ajusté. Malgré ces revers, Graphic Packaging rapporte que Toutes les installations touchées ont repris leurs opérations normales et que les niveaux de service client n'ont pas été impactés.
Graphic Packaging Holding Company (NYSE: GPK), ein globaler Marktführer in der nachhaltigen Verbraucherpackaging, hat seinen Ausblick für das Gesamtjahr 2024 aufgrund kürzlich aufgetretener betrieblicher Herausforderungen aktualisiert. Schwere Wetterbedingungen im Juli beeinträchtigten die Produktion in zwei Kartonfabriken, während ein Schaden an einer Elektrizitätsunterstation im August die Abläufe in einer dritten Einrichtung störte. Es wird erwartet, dass diese Ereignisse das bereinigte EBITDA um 20 bis 25 Millionen Dollar im dritten Quartal reduzieren.
Daher erwartet das Unternehmen nun, dass die Gesamtergebnisse für 2024 unter dem Median der zuvor angekündigten Prognosebereiche liegen werden: 1.730 Millionen bis 1.830 Millionen US-Dollar für das bereinigte EBITDA und 2,65 bis 2,85 US-Dollar für das bereinigte EPS. Trotz dieser Rückschläge berichtet Graphic Packaging, dass alle betroffenen Einrichtungen den normalen Betrieb wieder aufgenommen haben und die Servicelevel nicht betroffen waren.
- All affected facilities have resumed normal operations
- Customer service levels were not affected by the disruptions
- Expected reduction in Q3 Adjusted EBITDA by $20-25 million due to operational disruptions
- Full-year 2024 results anticipated to fall below the midpoint of previously announced guidance ranges
- Severe weather conditions led to reduced production at two paperboard manufacturing facilities
- Electrical substation damage resulted in disruption, lost production, and restart costs at a third facility
Insights
The update from Graphic Packaging Holding Company reveals short-term operational challenges with potential financial implications. The company expects a
While the individual events are not considered material, their cumulative impact is significant enough to affect the annual forecast. However, it's important to note that normal operations have resumed and customer service levels remained unaffected, suggesting the company's resilience in managing these disruptions. Investors should monitor how effectively Graphic Packaging can mitigate these short-term setbacks and maintain its competitive position in the sustainable consumer packaging market.
The operational challenges faced by Graphic Packaging highlight the vulnerability of manufacturing facilities to external factors. The impact of severe weather on two facilities and an electrical substation damage at a third underscores the importance of robust contingency planning and risk management strategies in the packaging industry.
Despite these setbacks, the company's ability to maintain customer service levels is commendable, indicating strong supply chain management and inventory controls. The swift resumption of normal operations at affected facilities demonstrates operational agility. However, the financial impact suggests room for improvement in disaster preparedness and infrastructure resilience. Moving forward, Graphic Packaging should consider investing in weather-proofing measures and redundant power systems to mitigate similar risks and ensure more consistent production output.
During July, severe weather conditions led to modestly reduced production at two paperboard manufacturing facilities. In August, an electrical substation was damaged at a third facility, resulting in additional disruption, lost production, and restart costs. While not material individually, as a group these events and added costs are expected to reduce Adjusted EBITDA by approximately
Each of the affected facilities resumed normal operations, and customer service levels were not affected.
Forward Looking Statements
Any statements of the Company's expectations in this press release, including 2024 Adjusted EBITDA and Adjusted Earning per Diluted Share guidance, constitute "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Such statements are based on currently available information and are subject to various risks and uncertainties that could cause actual results to differ materially from the Company's present expectations. These risks and uncertainties include, but are not limited to, inflation of and volatility in raw material and energy costs, continuing pressure for lower cost products, the Company's ability to implement its business strategies, including productivity initiatives, cost reduction plans, as well as the Company's debt level, currency movements and other risks of conducting business internationally and the impact of regulatory and litigation matters, including the continued availability of the Company's
Non-GAAP Financial Measures and Reconciliations
Adjusted EBITDA and Adjusted Earnings Per Share exclude gains or charges associated with: the Company's business combinations, facility shutdowns, and other special items. The Company's management believes that the presentation of Adjusted EBITDA and Adjusted Earnings Per Share provides useful information to investors because these measures are regularly used by management in assessing the Company's performance. Adjusted EBITDA and Adjusted Earnings Per Share are financial measures not calculated in accordance with generally accepted accounting principles in
Adjusted EBITDA and Adjusted Earnings Per Share should be considered in addition to results prepared in accordance with GAAP, but should not be considered substitutes for or superior to GAAP results. In addition, our Adjusted EBITDA and Adjusted Earnings Per Share, may not be comparable to Adjusted EBITDA or similarly titled measures utilized by other companies since such other companies may not calculate such measures in the same manner as we do.
A reconciliation of Adjusted EBITDA and Adjusted Earnings Per Share to their respective comparable GAAP measures for the second quarter of 2024 can be found in the Earnings Release for second quarter 2024, which is attached as Exhibit 99.1 to the Current Report on Form 8-K filed by the Company on July 30, 2024.
About Graphic Packaging Holding Company
Graphic Packaging designs and produces consumer packaging made primarily from renewable or recycled materials. An industry leader in innovation, the Company is committed to reducing the environmental footprint of consumer packaging. Graphic Packaging operates a global network of design and manufacturing facilities serving the world's most widely recognized brands in food, beverage, foodservice, household, and other consumer products. Learn more at www.graphicpkg.com.
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SOURCE Graphic Packaging Holding Company
FAQ
What events impacted Graphic Packaging's (GPK) operations in Q3 2024?
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Has Graphic Packaging (GPK) updated its full-year 2024 outlook?
Were Graphic Packaging's (GPK) customer service levels affected by the operational disruptions?
