10.30.17
Packaging Corporation of America reported third quarter 2017 net income of $139 million, or $1.47 per share and $1.68 per share excluding special items. Third quarter net sales were $1.6 billion in 2017 and $1.5 billion in 2016.
“Our containerboard and corrugated products price increases were implemented as planned and we continued to have strong demand in our packaging segment,” Mark W. Kowlzan, chairman and CEO, said. “Our containerboard mills ran very well and set an all-time quarterly production record. We built some extra inventory to prepare for the scheduled fourth quarter outage at our Counce Mill that was moved from earlier in the year and begin the integration of the Sacramento Container acquisition into our packaging business.
“Looking ahead to the fourth quarter,” Kowlzan added, “we expect packaging segment demand to remain strong although at seasonally lower volumes, which includes one less shipping day, as well as a seasonally less rich mix in corrugated products, compared to the third quarter. We will also have the addition of our newly acquired Sacramento Container operations in the fourth quarter. In our paper segment, we have started implementing our recently announced price increases, but expect seasonally lower volumes and a less rich sales mix.”
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“Our containerboard and corrugated products price increases were implemented as planned and we continued to have strong demand in our packaging segment,” Mark W. Kowlzan, chairman and CEO, said. “Our containerboard mills ran very well and set an all-time quarterly production record. We built some extra inventory to prepare for the scheduled fourth quarter outage at our Counce Mill that was moved from earlier in the year and begin the integration of the Sacramento Container acquisition into our packaging business.
“Looking ahead to the fourth quarter,” Kowlzan added, “we expect packaging segment demand to remain strong although at seasonally lower volumes, which includes one less shipping day, as well as a seasonally less rich mix in corrugated products, compared to the third quarter. We will also have the addition of our newly acquired Sacramento Container operations in the fourth quarter. In our paper segment, we have started implementing our recently announced price increases, but expect seasonally lower volumes and a less rich sales mix.”
Image via Shutterstock