WestRock Provides Update of Impact Following Hurricane Florence
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WestRock (Atlanta, Ga., USA), a leading provider of differentiated paper and packaging solutions, on Sept. 27, 2018 provided an estimate of the impact of Hurricane Florence on its business and fiscal fourth quarter financial results.
As previously announced, as a precaution, the company idled its kraft linerboard mill located in Florence, South Carolina in advance of the landfall of Hurricane Florence. All three paper machines at the mill have resumed normal production. The mill lost approximately 10,000 short tons of containerboard production.
The financial impact from Hurricane Florence on the September quarter is expected to be approximately $12 million on a pre-tax basis. This estimated impact is related to advance storm preparation costs across WestRock's regional mill and converting network; lost containerboard production; increased operating costs; higher regional input costs, including wood, transportation and logistics issues; and other storm-related costs. Some additional increased costs are expected to carry over into the December quarter, and the company will provide additional details, as appropriate, during its fiscal fourth quarter earnings conference call.
