01.31.17
Packaging Corporation of America reported fourth quarter 2016 net income of $111 million, or $1.17 per share and $1.23 per share excluding special items. Fourth quarter net sales were $1.5 billion in 2016 and $1.4 billion in 2015. Full year 2016 earnings were $450 million, or $4.75 per share and $4.88 per share excluding special items. Full year 2016 net sales were $5.78 billion compared to 2015 net sales of $5.74 billion.
In the Packaging segment, total corrugated products shipments were up 9.7%, or 11.5% per workday, over last year’s fourth quarter. Packaging segment price and mix was lower compared to the fourth quarter of 2015 and up compared to the third quarter of 2016.
Paper segment price and mix was higher than the fourth quarter of 2015 and flat compared to the third quarter of 2016.
“We had an excellent quarter as we quickly integrated our containerboard volume into the TimBar and Columbus Container acquisitions,” Mark Kowlzan, chairman and CEO, said. “Our containerboard mill and corrugated products plant volumes were new all-time records while inventories, including our new acquisitions, were flat with year-end 2015 levels. Packaging segment prices, which had been declining throughout the year, moved higher as we began implementing the announced price increases to our containerboard and corrugated products customers throughout the fourth quarter. Our Paper segment also performed exceptionally well, maintaining good cost control during the seasonally slower fourth quarter.
“Looking ahead to the first quarter,” Kowlzan added, “we expect to realize the vast majority of our previously announced packaging segment price increases and we expect higher corrugated products shipments.”
In the Packaging segment, total corrugated products shipments were up 9.7%, or 11.5% per workday, over last year’s fourth quarter. Packaging segment price and mix was lower compared to the fourth quarter of 2015 and up compared to the third quarter of 2016.
Paper segment price and mix was higher than the fourth quarter of 2015 and flat compared to the third quarter of 2016.
“We had an excellent quarter as we quickly integrated our containerboard volume into the TimBar and Columbus Container acquisitions,” Mark Kowlzan, chairman and CEO, said. “Our containerboard mill and corrugated products plant volumes were new all-time records while inventories, including our new acquisitions, were flat with year-end 2015 levels. Packaging segment prices, which had been declining throughout the year, moved higher as we began implementing the announced price increases to our containerboard and corrugated products customers throughout the fourth quarter. Our Paper segment also performed exceptionally well, maintaining good cost control during the seasonally slower fourth quarter.
“Looking ahead to the first quarter,” Kowlzan added, “we expect to realize the vast majority of our previously announced packaging segment price increases and we expect higher corrugated products shipments.”