(Reuters) – WestRock (NYSE:) beat expectations for quarterly earnings on Thursday, helped by higher prices, lower input costs and a recovery in demand for its paper packaging products, making it Its shares rose 6% premarket.
The company, which is being acquired by Ireland-based Smurfit Kappa for $11 billion, has refocused its attention on bolstering its corrugated packaging portfolio and implemented cost-saving measures by closing some of its paper mills past year.
Operating costs for materials such as chemicals, wood and recycled fiber have also declined from their highs.
The move away from plastic packaging and the rise of online shopping has helped WestRock keep prices high and combat higher costs and consumer budgets constrained by inflation.
On an adjusted basis, Westrock earned 39 cents per share, beating market expectations of 23 cents.
Still, its second-quarter revenue fell 10.4% to $4.73 billion, compared with analyst estimates of $4.75 billion, according to LSEG data.
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