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Jun 30, 2023
PCA Q2 2023 Earnings Report
Second quarter 2023 results were reported, reflecting a challenging demand environment and cost management efforts.
Key Takeaways
Packaging Corporation of America reported second quarter net income of $203 million, or $2.24 per share. Excluding special items, net income was $209 million, or $2.31 per share. Net sales for the quarter were $2.0 billion, compared to $2.2 billion in the same period last year.
Net income was $203 million, or $2.24 per share.
Excluding special items, net income was $209 million, or $2.31 per share.
Net sales reached $2.0 billion.
Shipments per day in the Packaging segment increased by 2.7% compared to the first quarter of 2023.
PCA
PCA
PCA Revenue by Segment
Revenue by Segment
Packaging Revenue
CapyFin.comPaper Revenue
CapyFin.com Forward Guidance
The company expects third quarter earnings of $1.88 per share.
Positive Outlook
- Shipments per day are expected to improve versus the second quarter in the Packaging segment.
- Seasonally stronger volume is expected in the Paper segment from back-to-school shipments.
- Operating and converting costs should trend slightly higher primarily due to higher recycled fiber prices and seasonal energy cost.
- Expect shipments per day to improve versus the second quarter.
- Prices will be lower as a result of the previously published domestic containerboard price decreases along with slightly lower export prices
Challenges Ahead
- There is one less shipping day for the corrugated business.
- Prices are expected to trend lower based on the recent declines in index prices.
- Scheduled outage expenses will be higher by approximately ($.06) per share driven by the scheduled maintenance planned at our International Falls, MN mill.
- Depreciation expense and tax rate to be slightly higher as well.
- Operating and converting costs should trend slightly higher primarily due to higher recycled fiber prices and seasonal energy cost.
Revenue & Expenses
Visualization of income flow from segment revenue to net income