Smurfit WestRock PLC (NYSE: SW) shares tumbled 5.22% in pre-market trading on Wednesday following the company's announcement of a reduced full-year profit forecast, driven by persistent weak demand in North America. The world's largest cardboard box maker is grappling with sluggish market conditions, particularly in the U.S. food, retail, and e-commerce sectors.

The Ireland-headquartered company revised its full-year adjusted EBITDA guidance to between $4.9 billion and $5.1 billion, down from the previous range of $5.0 to $5.2 billion. This adjustment 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 commented on the situation, stating, "We're just being prudent around how we see the world shaping up as we get to the end of 2025. 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, Smurfit WestRock reported some positive developments. The company 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. This marks a significant improvement from the 40% reported at the end of July. Additionally, the European market appears to be faring slightly better, with Bowles describing demand as "bouncing around okay" and noting that it was just a question of when it would improve, particularly in the lagging German market.