WestRock Company Announces Major Cut in Fiscal 2020 Capital Investments

SEATTLE (Scrap Monster): Atlanta-headquartered WestRock Company provided update related to the impact of Covid-19 pandemic on its operations. Also, it announced fiscal 2020 second quarter results.

The company announced its commitment to ensure the safety and well-being of its teammates. In response to the crisis situation, it has decided to reduce discretionary expenses and implement a cut in salaries and retainers of up to 25% for the senior executive team and board of directors. The quarterly dividend has been reset to $0.20 per share. Furthermore, the company has decided to reduce fiscal 2020 capital investments by approximately $150 million to $950 million.

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WestRock reported net sales of $4.45 billion in the second quarter, down by $173 million when compared with the prior year quarter. The Corrugated Packaging segment net sales reported a decline of $108 million, whereas the consumer Packaging segment net sales dipped by $52 million. The total income dropped by $61 million from the previous year. The Consumer Packaging segment income was up by $6 million. On the other hand, the Corrugated Packaging segment income declined by $66 million.

Steve Voorhees, chief executive officer noted that the company was able to deliver strong margins amidst rapidly changing economic environment.