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Mar 31, 2023
PCA Q1 2023 Earnings Report
Reported first quarter results with net income of $190 million and net sales of $2.0 billion.
Key Takeaways
Packaging Corporation of America reported first quarter 2023 results with net income of $190 million, or $2.11 per share, and net sales of $2.0 billion. Excluding special items, net income was $198 million, or $2.20 per share. Packaging segment demand was below expectations due to consumer spending impacted by higher interest rates and inflation.
Net income for the first quarter of 2023 was $190 million, or $2.11 per share.
Net sales for the first quarter of 2023 were $2.0 billion, compared to $2.1 billion in 2022.
Excluding special items, net income was $198 million, or $2.20 per share.
Packaging segment demand was below expectations due to consumer spending impacted by higher interest rates and inflation.
PCA
PCA
PCA Revenue by Segment
Revenue by Segment
Packaging Revenue
CapyFin.comPaper Revenue
CapyFin.com Forward Guidance
The company expects second quarter earnings of $1.96 per share.
Positive Outlook
- Improved volume is expected in the Packaging segment.
- Most operating costs are expected to trend lower.
Challenges Ahead
- There is one less shipping day for the corrugated business.
- Prices will be lower as a result of previously published domestic containerboard price decreases along with lower export prices.
- Sales volume as well as prices and mix in the Paper segment are assumed to be slightly lower based on lower demand.
- Converting costs, scheduled maintenance outage expense and depreciation expense will be higher.
- Higher freight and logistics expenses are expected compared to the first quarter due to recent increases in contract rail rates.
Revenue & Expenses
Visualization of income flow from segment revenue to net income