Packaging Corporation of America (NYSE: PKG) today reported second quarter net income of $100 million, or $1.01 per share. Second quarter net income included after-tax charges for the Boise integration and DeRidder mill restructuring of $14 million, or $0.15 per share, including cash charges of $2 million, or $0.03 per share, and non-cash charges of $12 million, or $0.12 per share. Excluding special items, second quarter 2014 net income was $114 million, or $1.16 per share, compared to second quarter 2013 net income of $71 million, or $0.73 per share, and first quarter 2014 net income of $106 million, or $1.08 per share. Details of special items are shown in the schedules included with this press release. Second quarter net sales were $1,468 million compared to second quarter 2013 net sales of $800 million and first quarter 2014 net sales of $1,431 million.
Excluding special items, the $0.08 per share increase in second quarter 2014 earnings, compared to first quarter 2014 earnings, was driven by increased sales volume ($0.07), lower energy costs ($0.07) and improved prices and mix ($0.05), partially offset by higher annual outage repair costs ($0.04), a higher tax rate ($0.02), increased depreciation expense ($0.02) and higher inventory consumption costs from extreme weather that were capitalized in inventory in the first quarter ($0.03).
In the packaging segment, EBITDA in the second quarter of 2014, excluding special items, was $259 million on sales of $1,145 million. Corrugated products shipments were up 4.8% compared to the first quarter, and excluding Boise, PCA shipments were up 5.5% in total and 3.8% per workday compared to the second quarter last year. With strong internal demand, PCA reduced its outside sales of containerboard by 8,000 tons compared to last year’s second quarter. Containerboard production was 846,000 tons, up 25,000 tons compared to the first quarter of this year.
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