Severe Weather Hits Graphic Packaging's Operations, Cuts Outlook

Graphic Packaging Holding Company GPK shares are trading lower premarket Wednesday. On Tuesday, the Atlanta-based company stated that severe weather reduced production at two paperboard facilities in July.

In August, an electrical substation failure at a third facility caused further disruptions and costs.

Consequently, Graphic Packaging lowered the outlook for adjusted EBITDA by $20 million to $25 million for the third quarter of 2024.

Graphic Packaging also anticipates full-year 2024 results to be below the midpoint of the previously forecasted adjusted EBITDA range of $1.73 billion to $1.83 billion and Adjusted EPS range of $2.65 to $2.85 versus a consensus of $2.70.

In July, Graphic Packaging Holding reported second-quarter adjusted EPS of 60 cents, beating the 57-cent estimate, while sales of $2.24 billion missed the $2.26 billion estimate.

Investors can gain exposure to the stock via Invesco MSCI Global Timber ETF CUT and Northern Lights Fund Trust IV Monarch Dividend Plus Index ETF MDPL.

Price Action: Graphic Packaging shares are down 1.09% at $29.32 premarket at the last check Wednesday.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.