DUBLIN - Smurfit Westrock plc (NYSE:SW, LSE:SWR) reported a net loss in its first quarter as a combined company following the merger of Smurfit Kappa and WestRock (NYSE:WRK), as revenue fell short of expectations. Shares slipped 1% in response to the results.
The paper and packaging company posted a net loss of $150 million, or $0.30 per share, for the third quarter ended September 30, compared to net income of $229 million, or $0.89 per share, in the same period last year. Adjusted earnings of $0.72 per share missed analyst estimates of $0.72.
Revenue rose to $7.67 billion from $2.92 billion a year ago, primarily due to the WestRock acquisition, but fell short of the $8.13 billion consensus forecast.
"I am pleased to report an excellent performance for the third quarter, the first for Smurfit Westrock," said Tony Smurfit, President and CEO. He noted the net loss was primarily due to transaction-related expenses and purchase accounting adjustments totaling approximately $500 million.
Adjusted EBITDA, a key profitability metric, came in at $1.27 billion with a margin of 16.5%. The company said this provides "a strong foundation to build upon."
For the full year 2024, Smurfit Westrock expects combined adjusted EBITDA of approximately $4.7 billion.
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