WestRock Company WRK has issued an update on the recent ransomware incident. The company is continuously implementing extensive efforts to detect and recover from this incident quickly and steadily.
On Jan 23, WestRock discovered the ransomware incident affecting few of its operational and information technology systems. The company immediately initiated an investigation and implemented business continuity processes. It also undertook response-containment protocols with the help of cybersecurity experts. These actions included shutting down certain systems as well as augmenting existing security monitoring, scanning and protective measures.
The company is also executing measures like manual processes in response to customers’ requirements. WestRock is now steadily bringing its information systems back online in a controlled and phased manner.
In fact, all of the company’s mills and converting locations are now in operation. Its mill system production through Feb 4 was around 85,000 tons lower than the plan, while the packaging converting operations are slowly returning to the planned production levels.
Though shipments from some of WestRock’s facilities have trailed production levels due to the incident, this gap is closing now as systems are being restored. The company is working toward maintaining its business operations and to reduce the impact on customers..
Recently, the company reported first-quarter fiscal 2020 results, wherein earnings and revenues beat the respective Zacks Consensus Estimate. While the bottom-line figure increased year over year, revenues registered a decline.
WestRock is poised to gain from solid growth in e-commerce activities amid the coronavirus crisis. The company's consumer packaging business is gaining from fiber-based packaging solutions, and significant demand in food, food service and beverage packaging categories. Its corrugated packaging business is poised to benefit from higher demand from distribution, industrial and agricultural customers as the economy gradually recovers from the pandemic.
Price Performance
Shares of WestRock have gained 5.2% over the past year, compared to the industry’s growth of 19.2%.
Zacks Rank & Stocks to Consider
WestRock currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the basic materials space include Fortescue Metals Group Limited FSUGY, BHP Group BHP and Impala Platinum Holdings Limited IMPUY. All of these stocks currently sport a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Fortescue has a projected earnings growth rate of 75.5% for the current fiscal year. The company’s shares have soared 134% in the past year.
BHP has an expected earnings growth rate of 59.5% for the current fiscal year. The company’s shares have gained around 28% over the past year.
Impala has a projected earnings growth rate of 189.4% for the current fiscal year. The company’s shares have appreciated around 51.3% in a year’s time.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
