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Jun 30, 2021
PCA Q2 2021 Earnings Report
Reported second quarter 2021 results with net income of $207 million and EPS of $2.17.
Key Takeaways
Packaging Corporation of America reported second quarter net sales of $1.9 billion and net income of $207 million, or $2.17 per share. Excluding special items, earnings per share were also $2.17.
Packaging segment demand remained very strong.
Mills and plants managed through material and chemical availability issues, a tight labor market, freight and logistics challenges, and planned maintenance outages.
An all-time record for total box shipments was achieved.
Sales groups are implementing previously announced price increases in both the Packaging and Paper segments.
PCA
PCA
PCA Revenue by Segment
Revenue by Segment
Packaging Revenue
CapyFin.comPaper Revenue
CapyFin.com Forward Guidance
Third quarter earnings are expected to be $2.37 per share.
Positive Outlook
- Continued strong demand for containerboard and corrugated products.
- One additional day for box shipments.
- Paper segment volume should be relatively flat.
- Previously announced price increases in both Packaging and Paper segments will be implemented.
- Annual outage costs will be lower with one outage in the third quarter versus four mill outages in the second quarter.
Challenges Ahead
- Inflation associated with most operating costs is expected to continue.
- Freight and logistics expenses are expected to continue.
- Energy costs will be impacted due to higher seasonal usage.
- Wood costs in southern mills will be higher due to wet weather.
- Wood costs in southern mills will be higher due to low inventory and high demand.
Revenue & Expenses
Visualization of income flow from segment revenue to net income