...July 10, 2023 Corrugated pricing continues to steadily fall, which will have a significant impact on WestRock Co.'s EBITDA this year. The impact of destocking in the industry has significantly affected demand volumes in the first half of the year. We believe much of the destocking effect is behind WestRock, but there is still some risk of soft demand from their customers as they continue to manage their own working capital as consumer demand in certain end markets remain weak (such as durables and beverage markets), as discretionary spending is limited. However, we expect WestRock to utilize its size and scale to maintain service levels to customers as they move back to a just-in-time demand following a period of build-up of safety stock to combat supply chain issues. The company will also focus on cost savings, with a $1 billion target over the next several years, including $200 million this year on supply chain and procurement. The announced closures of assets (for which production will...
