WestRock beats profit estimates as higher prices soften blow from weak packaging demand

Aug 3 (Reuters) - WestRock beat Wall Street expectations for third-quarter profit on Thursday as costs cut measures and higher prices for its corrugated boxes helped offset the hit from waning demand.

The shift in packaging industry to using more of recyclable materials like paper has helped WestRock keep its product prices high to protect margins from the impact of cost inflation.

Atlanta, Georgia-based WestRock reported adjusted profit per share of $0.89 for the third quarter, comfortably beating analysts' average estimate of $0.47 per share, as per Refinitiv data.

This follows company's strict cost cuts measure in the face of high-interest environment and weak consumer retail demand as it shut its paper mill in Tacoma, Washington on August 1 after closing North Charleston mill at the start of the year.

Its third-quarter revenue of $5.12 billion missed analysts' average estimate of $5.17 billion.

Sales from corrugated packaging segment rose 7.7% in the quarter ended June 30, which helped soften the blow from a 33.8% revenue decline in global paper unit.

WestRock, which is the second largest packaging company in the U.S. after International Paper, said it remain "focused" streamlining its portfolio and further reducing costs.

(Reporting by Juveria Tabassum; Editing by Shweta Agarwal)

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