GPK - Graphic Packaging edges out earnings estimates eyes $1B investment

Graphic Packaging Holding ( NYSE: GPK ) edged expectations for the fourth quarter and highlighted spending plans in Texas and Michigan.

For Q4, the Atlanta-based packaging solutions company’s $0.59 in earnings per share beat the Street expectation by one cent while a 20.1% jump in revenue from the prior year exceeded estimates by $70M. Management indicated that the results came in above expectations despite a $20M impact related to a late December storm.

“Our continued innovation in fiber-based consumer packaging solutions drove a third consecutive year of net organic sales growth at or above the high-end of our targeted range,” CEO Michael Doss said. “Our large acquisition in Europe has been integrated and is providing growth opportunities in new consumer markets while meeting our financial and synergy expectations.”

He added that the company intends to invest $1B over three years toward coated recycled paperboard production.

“Investments such as the CRB machine in Kalamazoo and other strategic initiatives are delivering real returns for shareholders and high-quality packaging for consumers,” Doss said. “Our plans to build a new CRB mill in Waco, Texas and optimize our paperboard network over the next three years will extend our position as the lowest-cost, highest-quality paperboard producer in North America and enhance our ability to meet growing global demand for fiber-based consumer packaging.”

Shares of Graphic Packaging Corp. ( GPK ) slipped 1.65% in premarket trading on light volume.

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