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Mar 31, 2021
PCA Q1 2021 Earnings Report
PCA reported first quarter results with net income of $167 million and EPS of $1.75.
Key Takeaways
Packaging Corporation of America reported a strong first quarter in 2021, with net sales reaching $1.8 billion and net income at $167 million, or $1.75 per share. Excluding special items, net income was $169 million, or $1.77 per share. The Packaging segment saw increased volume and prices, while the Paper segment experienced lower volume and prices.
Packaging segment demand remained very strong with a new all-time quarterly record for containerboard volume.
Containerboard and corrugated products price increases were implemented as planned.
Paper segment saw benefit of announced paper price increases compared to the fourth quarter of 2020.
Experienced higher inflation in manufacturing and converting costs and significantly higher freight and logistics expenses.
Revenue by Segment
Forward Guidance
In the Packaging segment, demand is expected to remain strong, and previously announced price increases will continue to be implemented. Export prices are also expected to move higher. In the Paper segment, volumes are expected to be fairly flat with higher average prices and mix as recently announced paper price increases continue to roll out. Outage expenses are estimated to be approximately ($.20) per share higher compared to the first quarter. Continued inflation is anticipated with freight and logistics expenses as well as most operating and converting costs. However, energy costs should improve as we move into seasonally milder weather.
Positive Outlook
- Demand in the Packaging segment is expected to remain strong.
- Previously announced price increases in the Packaging segment will continue to be implemented.
- Export prices are expected to move higher.
- Volumes in the Paper segment are expected to be fairly flat.
- Energy costs should improve as we move into seasonally milder weather.
Challenges Ahead
- Outage expenses are estimated to be approximately ($.20) per share higher compared to the first quarter.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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