01.30.20
Packaging Corporation of America reported fourth quarter 2019 net income of $136 million, or $1.43 per share, and net income of $163 million, or $1.71 per share, excluding special items. Fourth quarter net sales were $1.7 billion in both 2019 and 2018. Full year 2019 net income was $696 million, or $7.34 per share, and net income of $726 million, or $7.65 per share, excluding special items. Full year net sales were $7 billion in both 2019 and 2018.
In the Packaging segment, total corrugated product shipments with one additional work-day were up 2.3% and shipments per day were up 0.7% over last year’s fourth quarter. Containerboard production was 1,079,000 tons, and containerboard inventory was down 31,000 tons compared to the fourth quarter of 2018 and down 6,000 tons from the third quarter of 2019. In the Paper segment, sales volume was up 30,000 tons (excluding the discontinued paper business at the Wallula Mill) compared to the fourth quarter of 2018 and up 8,000 tons from the third quarter of 2019.
“We continued to run our containerboard system to demand in a very cost-effective manner,” Mark W. Kowlzan, chairman and CEO, said. “Our mill production supplied the necessary containerboard to achieve a new all-time quarterly record for box shipments per day and a new fourth quarter record for total box shipments, allowing us to maintain our industry-leading integration rate. In our Paper segment, we also ran our system to demand, however, we had solid volume which came in better than anticipated, and we reduced our office paper inventory by almost 10% compared to the third quarter of 2019. Prices and mix were lower as expected, but also slightly better than anticipated.”
In the Packaging segment, total corrugated product shipments with one additional work-day were up 2.3% and shipments per day were up 0.7% over last year’s fourth quarter. Containerboard production was 1,079,000 tons, and containerboard inventory was down 31,000 tons compared to the fourth quarter of 2018 and down 6,000 tons from the third quarter of 2019. In the Paper segment, sales volume was up 30,000 tons (excluding the discontinued paper business at the Wallula Mill) compared to the fourth quarter of 2018 and up 8,000 tons from the third quarter of 2019.
“We continued to run our containerboard system to demand in a very cost-effective manner,” Mark W. Kowlzan, chairman and CEO, said. “Our mill production supplied the necessary containerboard to achieve a new all-time quarterly record for box shipments per day and a new fourth quarter record for total box shipments, allowing us to maintain our industry-leading integration rate. In our Paper segment, we also ran our system to demand, however, we had solid volume which came in better than anticipated, and we reduced our office paper inventory by almost 10% compared to the third quarter of 2019. Prices and mix were lower as expected, but also slightly better than anticipated.”