LAKE FOREST, Ill. - Jul. 24, 2023 - Packaging Corporation of America (NYSE: PKG) today reported second quarter 2023 net income of $203 million, or $2.24 per share, and net income of $209 million, or $2.31 per share, excluding special items.
Second quarter net sales were $2.0 billion in 2023 and $2.2 billion in 2022.
Commenting on reported results, Mark W. Kowlzan, Chairman and CEO, said, “Actual results versus our guidance for the quarter reflect the outstanding efforts by employees across the Company to manage our operations in an efficient and cost-effective manner as we continued to operate both our Packaging and Paper segments against a challenging demand environment. Results also reflect energy and virgin fiber prices being lower than anticipated, and our logistics and distribution personnel did a great job minimizing the effect of higher freight rates in certain regions as well as optimizing freight routes and transportation modes. During the second quarter, we temporarily idled our Wallula, WA mill as we continued to operate the Packaging segment based on our outlook for demand.”
“Looking ahead as we move from the second and into the third quarter,” Mr. Kowlzan added, “in our Packaging segment, although there is one less shipping day for the corrugated business, we expect shipments per day to improve versus the second quarter. However, prices will be lower as a result of the previously published domestic containerboard price decreases along with slightly lower export prices. We expect seasonally stronger volume in our Paper segment from back-to-school shipments, although prices are expected to trend lower based on the recent declines in index prices. Operating and converting costs should trend slightly higher primarily due to higher recycled fiber prices and seasonal energy cost. Scheduled outage expenses will be higher by approximately ($.06) per share driven by the scheduled maintenance planned at our International Falls, MN mill. Finally, we estimate our depreciation expense and tax rate to be slightly higher as well. Considering these items, we expect third quarter earnings of $1.88 per share.”
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Source: Packaging Corporation of America
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