10.21.16
Packaging Corporation of America reported third quarter 2016 net income of $119 million, or $1.26 per share and $1.30 per share excluding special items. Third quarter net sales were $1.5 billion in 2016 and in 2015.
In the Packaging segment, corrugated products shipments, excluding TimBar, set all-time records for both total shipments as well as shipments per day with shipments up 1.7% over last year’s record third quarter with the same number of workdays. Containerboard production was 950,000 tons, and containerboard inventory was down 11,000 tons compared to the end of the second quarter of 2016 and 16,000 tons below the third quarter of 2015.
Paper segment price and mix was higher than the third quarter of 2015 and the second quarter of 2016. White paper sales volume was higher and pulp volumes were lower compared to the third quarter of 2015 while both paper sales volume and pulp volumes were up versus the second quarter of 2016.
“We had an excellent quarter even with lower pricing and mix in our containerboard and corrugated products,” Mark W. Kowlzan, chairman and CEO, said. “Our packaging mills ran very well, and we set all-time record volumes in our corrugated products plants while reducing inventory levels as we quickly integrate our containerboard volume through our new corrugated products plants from the TimBar acquisition. Our Paper segment EBITDA margin increased as we grew our paper volume and achieved additional operational efficiencies while continuing to improve prices since the second quarter 2016 price increase announcements.”
In the Packaging segment, corrugated products shipments, excluding TimBar, set all-time records for both total shipments as well as shipments per day with shipments up 1.7% over last year’s record third quarter with the same number of workdays. Containerboard production was 950,000 tons, and containerboard inventory was down 11,000 tons compared to the end of the second quarter of 2016 and 16,000 tons below the third quarter of 2015.
Paper segment price and mix was higher than the third quarter of 2015 and the second quarter of 2016. White paper sales volume was higher and pulp volumes were lower compared to the third quarter of 2015 while both paper sales volume and pulp volumes were up versus the second quarter of 2016.
“We had an excellent quarter even with lower pricing and mix in our containerboard and corrugated products,” Mark W. Kowlzan, chairman and CEO, said. “Our packaging mills ran very well, and we set all-time record volumes in our corrugated products plants while reducing inventory levels as we quickly integrate our containerboard volume through our new corrugated products plants from the TimBar acquisition. Our Paper segment EBITDA margin increased as we grew our paper volume and achieved additional operational efficiencies while continuing to improve prices since the second quarter 2016 price increase announcements.”