Shares of Smurfit WestRock PLC (SW) plummeted 5.31% in pre-market trading on Wednesday after the world's largest cardboard box maker cut its full-year profit forecast due to persistent weak demand in North America. The company now expects full-year adjusted EBITDA to be between $4.9 billion and $5.1 billion, down from the previous range of $5.0 to $5.2 billion.

The revised guidance comes as Smurfit WestRock plans to implement additional downtime in its factories during the fourth quarter, primarily in North America, to align production with softer demand. Chief Financial Officer Ken Bowles cited ongoing weakness in key sectors, stating, "The demand patterns in the United States that we talked about reversing during the year and hoping would come through still don't seem to be there, particularly confectionery, foods, the retail sector, e-commerce."

Despite the challenges, the company reported some positive developments. Smurfit WestRock has successfully turned 65-70% of previously loss-making U.S. contracts inherited from its $11 billion acquisition of WestRock in 2024 into profitable ones, up from 40% at the end of July. The European market appears to be faring slightly better, with demand described as "bouncing around okay." However, investors seem to be focusing on the near-term headwinds, as reflected in the sharp stock decline.