Packaging of America (PKG)
Q2 2011 Earnings Call
July 19, 2011 10:00 am ET
Richard West - Chief Financial Officer, Principal Accounting Officer and Senior Vice President
Mark Kowlzan - Chief Executive Officer and Director
Thomas Hassfurther - Executive Vice President of Corrugated Products
Paul Stecko - Executive Chairman
Chip Dillon - Citigroup
Phil Gresh - JP Morgan Chase & Co
Joshua Zaret - Longbow Research LLC
Mark Wilde - Deutsche Bank AG
Andy Feinman - Iridian Asset Management
Unknown Analyst -
Mark Weintraub - Buckingham Research Group, Inc.
Anthony Pettinari - Citigroup Inc
Thank you for joining Packaging Corporation of America's Second Quarter 2011 Earnings Conference Call. Your host today will be Mark Kowlzan, Chief Executive Officer of PCA. [Operator Instructions] I will now turn the conference over to Mr. Kowlzan. Please go ahead when you're ready.
Good morning, and welcome to Packaging Corporation of America's Second Quarter Earnings Release Conference Call. I'm Mark Kowlzan, CEO of PCA, and with me on the call today is Paul Stecko, Executive Chairman of PCA; Tom Hassfurther, who runs our Corrugated Business; and Rick West, PCA's Chief Financial Officer. Thanks for participating in this morning's call. After the presentation, we'll be glad to take any questions.
Yesterday, we reported second quarter net income of $39 million or $0.39 per share, which included after-tax income of $1 million or $0.01 per share from an adjustment to reserves related to medical benefits and a $1 million, or $0.01 per share charge from asset disposals related to major energy products. Reported results for the second quarter of 2010 were $38 million, or $0.37 per share which included an after-tax charge of $1 million, or $0.01 per share from energy project asset disposal charges. Net sales were a record $665 million, up 8% compared to the second quarter of 2010 net sales of $615 million. Year-to-date sales were $1.29 billion compared to $1.17 billion in 2010. Excluding the reserve adjustment and asset disposal charges, second quarter 2011 earnings were $40 million, or $0.39 per share.