IrelandSmurfit Westrock, a Dublin-based cardboard box manufacturer formed by the merger of Smurfit Kappa and Westrock, has lowered its full-year earnings forecast due to increased energy and freight costs. The company now expects adjusted Ebitda between $4.9 billion and $5.1 billion for 2024, down from its previous estimate of $5 billion to $5.3 billion. Freight costs are projected to rise by $300 million, while energy costs are expected to increase by $200 million compared to 2025 levels. Second-quarter Ebitda fell 6% to $1.14 billion, though net sales increased slightly to $8.03 billion. CEO Tony Smurfit noted that demand for paper remained strong despite rising input costs, and the company anticipates recovering these costs in the second half of the year. Shares dropped as much as 7.2% in early trading but remain up 8% year-to-date. Analysts note the revised guidance aligns with market expectations. The merger aimed to improve performance at Westrock, with progress shown through reduced loss-making plants and capacity reductions in North America.
Bias read (Center): The article presents factual economic developments affecting a multinational corporation without overt ideological framing. While it mentions political factors such as U.S. policies impacting truck driver availability and references former President Donald Trump, these are presented as external cost
