Smurfit Westrock posts quarterly loss of more than €22m 

Company reported net loss for period April to June as a result of costs associated with previously announced plant closures and other restructuring actions, which cost $280m

Smurfit Westrock was created last year following the merger of packaging giant Smurfit Kappa and US packaging firm WestRock in a deal reportedly worth $11.2bn. Picture: NYSE

Despite reporting a loss of $26m (€22.35m) for the second quarter of the year, the chief executive of packaging firm Smurfit Westrock said the company had a “strong” performance in line with its guidance.

The company reported a net loss for the period April to June as a result of costs associated with the previously announced plant closures and other restructuring actions, which cost the company $280m in total.

In that time, it generated net sales of just under $8bn, and adjusted earnings before various deductions of $1.21bn.

Smurfit Westrock chief executive Tony Smurfit said the company’s performance was driven by the “significant improvement in our North American business and continued excellent results from our Latin American operations, somewhat offset by a resilient performance from our European, Middle East, Africa, and Asia-Pacific businesses”.

Mr Smurfit added they were “increasingly excited about the performance and prospects of the business and assuming the current conditions prevail".

“We expect third-quarter adjusted earnings before interest, taxes, depreciation and amortisation [EBITDA] to be approximately $1.3bn and our current estimate for a full-year adjusted EBITDA3 remains between $5bn and $5.2bn,” he said.

The company also announced a quarterly dividend of $0.43 a per share payable on September 18 to shareholders of record at the close of business on August 15.

Smurfit Westrock was created last year following the merger of packaging giant Smurfit Kappa and US packaging firm WestRock in a deal reportedly worth $11.2bn.

The deal will create a packaging company that provides everything from corrugated storage boxes to beer carriers and e-commerce shipping materials.