WestRock Company (NYSE:WRK) Q1 2023 Earnings Call Transcript

Alex Pease: Sure. So, let me — I’m going to avoid giving guidance. So, I’m going to try to give you — where we’re headed. So, I think I mentioned in my prior comments, we do anticipate gas right now in Q2 at around $5 an MMBtu. We see that as relatively steady through the back half of the year. OCC, it’s right now at around $35, $36 a ton. We do see that strengthening as we get to the year. So, probably exiting in Q4, maybe a little bit between where it was in Q3 and Q4 of fiscal 2022. Virgin probably staying fairly consistent with where it’s been were exited last year, call it, in the $45, $46 a ton zone freight mitigating, so freight being stable. And really the largest headwind I mentioned being the chemical and the wage, which is 4%, and that will persist through the balance of the year.

Unidentified Analyst: Got it. Okay. thanks Alex. And David, just on the topic of providing full year guidance, I mean I know you’re doing it just to help investors get a sense for what your full year expectations are. But obviously, during COVID, the company withdrew guidance. And now again, you’ve chosen to withdraw guidance. So, just on a longer term basis, do you think it’s appropriate to continue providing full year profit guidance just given how frequently you’ve had to withdraw it. And look, you have no control over the macro, currency, commodity costs, et cetera. So, is it really worth it to try to give investors a sense for what you expect when there’s just so much over which you have no control?

David Sewell: Yes, Adam, I appreciate your comments and thank you for them. Your points are all valid, and we’ll continue to evaluate it as we continue to move forward. But you’re right, there are a lot of moving pieces that are out of our control versus we are in a cyclical market, and so we’ll continue to evaluate it. But I don’t think we have a firm answer one way or the other right now.

Unidentified Analyst: Yes, thanks so much David. Appreciate it.

David Sewell: Thank you.

Operator: This concludes our question-and-answer session. I would like to turn the conference back over to Rob Quartaro for closing remarks.

Rob Quartaro: Great. Thank you, everybody, for joining our call today. As usual, we are available after the call for any additional questions that you have. And we look forward to updating you again next quarter. Thank you.

Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.