Packaging Corporation of America (PKG) has reported sales of $1.6bn for the second quarter of this year, compared to $1.4bn for the same period last year.
The company reported a net income of $143m for the period, compared to $115.9m in the year-ago period.
Earnings per share for the period were $1.52 and compared to last year, it was an increase of $0.29.
For the period, the company’s containerboard production stood at 947,000 tons and containerboard inventory decreased 25,000 tons compared to the last year second quarter and 14,000 tons below the first quarter of this year.
In paper segment, sales were lower in the second quarter compared to the first quarter of this year and the same period for last year.
Packaging Corp. of America Chairman and CEO Mark Kowlzan said, “Our results were driven by continued strong demand as well as from the benefits of our recent TimBar and Columbus Container acquisitions.
The containerboard and corrugated products price increases were implemented as planned, which helped us offset higher inflation in many of our manufacturing and converting costs and higher freight costs. Our containerboard inventory levels were below those of a year ago and year-end levels despite the additional containerboard inventory requirements of our acquisitions.”
“Looking ahead to the third quarter. we expect to realize the vast majority of our previously announced packaging segment price increases, and we expect higher containerboard and corrugated products shipments resulting from strong demand. White paper sales volumes should be seasonally higher, although price and mix should move lower.
We also anticipate continued price inflation in recycled fiber and certain chemicals, higher freight costs and a higher tax rate. Considering these items, we expect third quarter earnings of $1.68 per share. This does not include any potential additional costs or anticipated recoveries related to the Deridder Mill insurance claim.”
