FINANCIAL ANALYSTS: Graphic Packaging announces $50/ton CUK price increase [KeyBanc]

excerpt from KeyBanc Capital Markets

RISI reported last night that Graphic Packaging (GPK) has informed customers of a $50/ton coated unbleached kraft (CUK) boxboard price increase effective February 11; CUK prices already went up by $100/ton in 2018 with two successful price increases in February-March and August. The U.S. CUK market is a duopoly: GPK produces ~1.5 million tons/yr. and WestRock (WRK) produces ~1.2 million tons/yr. by our estimates. If fully successful, GPK would realize an annualized EBITDA benefit of ~$35 million, which would hit its numbers in 2019/2020 given the 9-month lag that exists. That said, as investors are well ...

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