WestRock Company has announced results for its fiscal second quarter ended March 31, 2020 and provided an update related to the impact of the COVID-19 pandemic on the company.
Net sales of $4.45 billion decreased by 3.7% compared to the prior year quarter. Corrugated Packaging segment net sales declined $108 million, primarily due to lower corrugated selling price/mix, partially offset by higher volumes. Consumer Packaging segment net sales declined $52 million, primarily due to lower selling price/mix, lower volumes and the unfavorable impact of foreign currency.
Segment income decreased $61 million compared to the prior year quarter. Corrugated Packaging segment income decreased $66 million and Consumer Packaging segment income increased $6 million.
Given the uncertainties associated with COVID-19, the company is building on its financial strength by providing one-time recognition awards to manufacturing and operations teammates, matching the supply with customer demand and decreasing salaries and retainers up to 25% for the senior executive team and board of directors. The company expects to use company stock to pay its annual incentive and company funded 401(k) contributions in 2020
WestRock has announced a reduction in fiscal 2020 capital investments by approximately $150 million, to a level of $950 million and a reduction in fiscal 2021 capital investments to a range of $600 to $800 million. It is also resetting its quarterly dividend to $0.20 per share for an annual rate of $0.80 per share.
