DUBLIN, May 1 (Reuters) - U.S. order books at the
world's largest cardboard box maker Smurfit Westrock ( SW ) are
steadying after "a lot of weakness" in March and early April
amid falling consumer confidence, chief executive Tony Smurfit
said on Thursday.
Smurfit said the Ireland-headquartered company was "seeing a
lot of nervousness" among its customers that span the household
goods, food and pharmaceutical sectors in relation to tariffs
but that it had not yet translated into "any material issue".
He made the comments after the packaging giant reported
first quarter core profit of $1.25 billion, in line with its
guidance, and forecast a 6% to 11% rise in full year earnings to
between $5.0 billion and $5.2 billion.
"We did see a lot of weakness in March and the first two
weeks of April. It seems to be steadying itself, our order books
are getting better in the second half of April than they were in
the six weeks prior to that. That gives us some encouragement,"
Smurfit told an analyst call when asked about the U.S. market.
Smurfit Westrock ( SW ) expected some recovery in the second half
of the year but not the kind of bounceback some competitors were
talking about that would require a level of consumer confidence
that is not currently seen in surveys, he added.
Smurfit said the European market was a bit better and that
while demand may not be strong, it is "reasonable" and on an
improving trend.
Smurfit Westrock's ( SW ) UK-listed shares were 2.4% lower at 1230
GMT.
While it largely sells to customers within each of the 40
countries in which it operates, Smurfit said it has adjusted its
U.S./Canada supply chains in response to tariffs to cut out the
previous large amount of cross border trade.