Q3 2023 Earnings Summary
Reported on Jan 4, 2025 (Before Market Open)
Pre-Earnings Price$33.12Last close (Oct 25, 2023)
Post-Earnings Price$32.88Open (Oct 26, 2023)
Price Change
$-0.24(-0.72%)
- Management indicates that demand has bottomed, and the outlook is more encouraging, with strong order books through the end of the year. ,
- Destocking is generally over, with customers' inventories adjusted, leading to improved order patterns and potential increase in future box demand.
- North American box volumes have improved, with order book growth of about 3% to 4% in October, expected to improve to 4% to 5% sequentially for the quarter, indicating continued market recovery.
- Fourth quarter EBITDA is expected to decline from $590 million in Q3 to the upper $400 million range, indicating decreasing profitability.
- The Cellulose Fibers business may be operating at or below breakeven in Q4, reflecting ongoing challenges in this segment.
- Persistent supply-demand imbalance is pressuring pricing, despite improvements in demand, suggesting continued margin pressure.