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Jun 30, 2020
PCA Q2 2020 Earnings Report
PCA reported second quarter results with net income of $57 million and EPS of $0.59, but excluding special items, net income was $132 million and EPS was $1.38.
Key Takeaways
Packaging Corporation of America reported a decrease in net income for the second quarter of 2020 compared to the previous year. Net income was $57 million, or $0.59 per share, while excluding special items, net income was $132 million, or $1.38 per share. Net sales also decreased from $1.76 billion in 2019 to $1.54 billion in 2020. The company faced challenges in the Paper segment due to the COVID-19 pandemic, but saw strong performance in the Packaging segment.
Net income was $57 million, or $0.59 per share.
Excluding special items, net income was $132 million, or $1.38 per share.
Net sales were $1.54 billion, down from $1.76 billion in the previous year.
Packaging segment saw an increase in corrugated products shipments and shipments per day by 1.2%.
Revenue by Segment
Forward Guidance
Looking ahead to the third quarter, the company will stay focused on preserving financial and balance sheet strength during these uncertain times. Corrugated products demand has performed quite well so far this year, and the company expects the third quarter to be even stronger. The actions being taken in the Paper business have already been announced, and the company will continue to evaluate the demand for its paper products throughout the third quarter. Due to changing shelter-in-place and lockdown conditions across the country, the company is not able to appropriately quantify its guidance for the third quarter.
Positive Outlook
- Corrugated products demand has performed quite well so far this year.
- Expect the third quarter to be even stronger for corrugated products demand.
- Replenished containerboard inventories at the start of the third quarter.
- Focused on preserving financial and balance sheet strength.
- Well-positioned to manage whatever lies ahead.
Challenges Ahead
- Shelter-in-place and lockdown conditions continue to change constantly across the country.
- Such events and actions could adversely impact expectations and the operation of facilities.
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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