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.”
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