By Dean Seal
Shares of Graphic Packaging fell after the company cut its full-year guidance and reported a disappointing first quarter.
The stock was down 9% at $23.03 in premarket trading. Shares were already down about 7% year to date when the market closed Wednesday.
The maker of cups, boxes and other fiber-based packaging products on Thursday said its outlook was reduced to reflect lower volumes and higher costs.
The Atlanta-based company now projects $8.2 billion to $8.5 billion in sales for the year, down from its prior guidance for $8.7 billion to $8.9 billion. Adjusted earnings are now on track to hit $1.75 to $2.25 a share for the year instead of $2.53 to $2.78 a share, as previously forecast.
Chief Executive Michael Doss said the first quarter's results fell short of internal expectations due to a challenging economic and consumer environment.
Sales fell 6% to $2.12 billion, slightly lower than analyst estimates, driven by its divestiture of a bleached-paperboard manufacturing facility and reduced open-market sales participation. Foreign currency was a headwind as well.
Volumes increased modestly, offsetting some pressure on its pricing power. Doss said promotional activity is driving mix and brand-switching, but not boosting foot traffic or volume gains.
Adjusted earnings of 51 cents a share for the first quarter missed analyst targets by 7 cents.
Write to Dean Seal at dean.seal@wsj.com
(END) Dow Jones Newswires
May 01, 2025 08:00 ET (12:00 GMT)
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