Packaging Corp. of America (PCA) posted third-quarter 2022 net income of $262 million, or $2.80 per share, on net income of $266 million and 2022 net sales of $2.1 billion, up from $2 billion in revenue. in the third quarter of last year.
Earnings per share (EPS) numbers for the Lake Forest, Illinois-based company also increased 6.4% year-over-year, from $2.63 in the third quarter of 2021 to $2.80 this year. Earnings reported in the third quarter of 2022 were lower due to an exceptional item related to paper-to-corrugated conversion costs at the Jackson, Alabama plant.
In the packaging sector, total shipments of corrugated products and shipments per day decreased by 6% compared to the third quarter of last year, according to the PCA. The production of over 1,116 million tonnes of corrugated base paper completed an increase of 11,000 tonnes compared to the third quarter of 2021 and 22,000 tonnes compared to the previous quarter.
Paper division sales volume decreased by 13,000 tonnes compared to the third quarter of 2021 and increased by 6,000 tonnes compared to the second quarter of last year.
Mark W. Kowlzan, Chairman and CEO of PCA, said:
“The implementation of previously announced price increases in our packaging and paper segments continued to produce excellent results, and our factories and factories continued to focus on reducing operating costs through process efficiency optimization efforts and material usage initiatives. did,” he adds. A planned outage at the mill was executed very well, with a corrugated baseboard system in place in a very cost-effective way to match supply and demand. “
Regarding the rest of the year, Kowlzan said: current outlook. The Jackson, Alabama facility will complete its scheduled annual maintenance outage and the first phase of corrugated board conversion operations on its No. 3 machine. “
Regarding additional challenges, Kowlzan said:
“Our paper division will continue to implement the price increases we implemented in September, but with lower volumes compared to our seasonally strong third quarter.”
He concludes: Considering these items, he expects fourth-quarter earnings to be $2.22 per share. ”
This number would be down 20.7% from third quarter EPS.
PCA claims to be the third largest producer of containerboard products in North America and the leading producer of uncoated free sheet paper. The company operates eight of his factories and 90 corrugated product factories and related facilities.