This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Packaging Corporation Of America Reports Record Third Quarter 2013 Results

Packaging Corporation of America (NYSE: PKG) today reported third quarter 2013 net income of $84 million, or $0.86 per share, which included an after tax charge of $3 million, or $0.03 per share, for costs related to the announced Boise Inc. acquisition agreement and a non-cash charge of $2 million after tax, or $0.02 per share, for changes to PCA’s mill employee pension plan. Excluding special items, net income was a record $89 million, or $0.91 per share, compared to third quarter 2012 net income of $53 million, or $0.55 per share, which excludes debt refinancing charges. Net sales were a record $845 million, up 17% from third quarter 2012 of $723 million.

The $0.36 per share earnings increase, excluding special items, was driven by higher containerboard and corrugated products prices and mix ($0.44) and increased volume ($0.05). These items were partially offset by higher costs for fiber ($0.03), labor ($0.03), incentive compensation ($0.03), energy ($0.02), transportation ($0.01) and chemicals ($0.01).

Excluding special items, net income for the first nine months of 2013 was $219 million, or $2.25 per share, compared to $142 million, or $1.45 per share, in 2012. Year-to-date net sales were $2.4 billion, up 14% compared to $2.1 billion in 2012.

Corrugated products shipments were up 7.8% compared to last year’s third quarter, and mill containerboard production was a record 671,000 tons. Outside domestic sales of containerboard were up 8,000 tons from last year’s third quarter, and export shipments were 20,000 tons lower as PCA reduced export sales to support higher containerboard demand at its box plants. Containerboard inventories at the end of September were 4,000 tons below year-end 2012.

Commenting on results, Mark W. Kowlzan, Chief Executive Officer of PCA, said, “We had an exceptional quarter setting records for earnings and sales. Our mills ran extremely well, and both our containerboard and corrugated products demand remained strong. Box shipments set an all-time record for shipments per workday, and we realized a full pass-through of our April containerboard price increase to corrugated products.”

1 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs