Graphic Packaging to Shut Down Operations at Middletown Facility

Graphic Packaging Holding Company GPK announced that it decided to permanently shut down its coated recycled paperboard manufacturing facility in Middletown, OH, effective June 1, 2025. This move is in sync with Graphic Packaging’s strategy to consolidate recycled paperboard production into Kalamazoo, MI, and the new Waco facility in Texas. Graphic Packaging is working closely with 130 employees who are impacted by the closure. The company aims to provide them with employment placement assistance and support.Shutting down Middletown aligns with Graphic Packaging’s goal to enhance its paperboard manufacturing capabilities. This will also reduce the environmental footprint through improved water and energy usage.GPK Investing in Waco Facility to Meet DemandIn 2023, Graphic Packaging unveiled its plans to build a facility in Texas to meet the increasing consumer demand for more sustainable packaging. The Waco facility will employ advanced technology to manufacture recycled paperboard for consumer goods packaging. This will be similar to the company's Kalamazoo facility, which achieved full capacity in just a year after launching in 2022.The Waco facility remains on track to start commercial production in late 2025.These investments allow the company to produce the highest quality paperboard, which is North America’s most economically advantaged paperboard available.GPK’s Q4 PerformanceGraphic Packaging posted an adjusted EPS of 59 cents in the fourth quarter of 2024, which missed the Zacks Consensus Estimate of 63 cents. The bottom line marked a 21% decline from the year-ago quarter. Sales in the fourth quarter were down 7% year over year to $2.1 billion. The top line fell short of the Zacks Consensus Estimate of $2.18 billion.The decline in GPK’s sales was attributed to a $103-million negative impact of the divestiture of the Augusta, GA, bleached paperboard manufacturing facility, and bleached paperboard price and volume declines.The company also witnessed a $22-million net decrease in sales from packaging operations, wherein price declines were partially offset by volume growth. Other acquisitions and divestitures (excluding Augusta) had a $14-million unfavorable impact on sales in the quarter, while foreign exchange had a $15-million unfavorable impact.Graphic Packaging Stock’s Price PerformanceThe company’s shares have gained 5.8% in the past year against the industry’s 3.3% decline.  Image Source: Zacks Investment Research GPK’s Zacks Rank & Stocks to ConsiderGraphic Packaging currently has a Zacks Rank #4 (Sell).Some better-ranked stocks from the Industrial Products sector are Applied Industrial Technologies, Inc. AIT, Enersys ENS and Dover Corporation DOV. These three companies have a Zacks Rank #2 (Buy) at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.Applied Industrial has an average trailing four-quarter earnings surprise of 5.3%. The Zacks Consensus Estimate for its 2025 earnings is pinned at $9.90 per share, which indicates year-over-year growth of 1.5%. The company’s shares have gained 15.8% in a year.The Zacks Consensus Estimate for Enersys’ fiscal 2025 earnings is pegged at $10.00 per share, which indicates year-over-year growth of 19.7%. The company has a trailing four-quarter average earnings surprise of 2.2%. Enersys shares have gained 4.9% in a year.The Zacks Consensus Estimate for Dover’s 2025 earnings is pegged at $9.46 per share, which indicates year-over-year growth of 14.1%. The company has a trailing four-quarter average earnings surprise of 5.3%. Dover shares have gained 2.3% in a year.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Dover Corporation (DOV): Free Stock Analysis Report Applied Industrial Technologies, Inc. (AIT): Free Stock Analysis Report Graphic Packaging Holding Company (GPK): Free Stock Analysis Report Enersys (ENS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks