ATLANTA, Sept. 3,
2024 /PRNewswire/ -- Graphic Packaging Holding
Company (NYSE: GPK), ("Graphic Packaging", the "Company"), a
global leader in sustainable consumer packaging, today provided an
update on operating conditions in the third quarter and on its
full-year 2024 outlook.
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
$20 million to $25 million in the third quarter. As a result,
the Company now expects full-year 2024 results will fall below the
midpoint of the previously announced $1,730
million to $1,830 million
Adjusted EBITDA guidance range and the $2.65 to $2.85
Adjusted EPS guidance range.
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 U.S. federal income tax
attributes to offset U.S. federal income taxes and the timing
related to the Company's future U.S. federal income tax payments.
Undue reliance should not be placed on such forward-looking
statements, as such statements speak only as of the date on which
they are made and the Company undertakes no obligation to update
such statements, except as required by law. Additional information
regarding these and other risks is contained in the Company's
periodic filings with the SEC.
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 the United States
("GAAP"), and are not measures of net income, operating income,
operating performance, or liquidity presented in accordance with
GAAP.
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