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Jun 30, 2024
PCA Q2 2024 Earnings Report
Reported net income of $199 million and net sales of $2.1 billion.
Key Takeaways
Packaging Corporation of America (PCA) reported second quarter 2024 results, with net income of $199 million, or $2.21 per share. Excluding special items, net income was $199 million, or $2.20 per share. Net sales for the quarter were $2.1 billion, compared to $2.0 billion in the second quarter of 2023. The results were $0.13 above the second quarter guidance of $2.07 per share due to higher volume in the Packaging segment, lower operating and converting costs, and lower freight costs.
Corrugated products shipments per day were up 9.2% over last year’s second quarter.
Total shipments were up 10.9% with one additional shipping day.
Containerboard production reached 1,281,000 tons.
Sales volume in the Paper segment was up 12% compared to the second quarter of 2023.
Revenue by Segment
Forward Guidance
The company expects third quarter earnings of $2.45 per share.
Positive Outlook
- Prices and mix in both Packaging and Paper segments will move higher.
- Implementation of previously announced increases along with higher containerboard export prices.
- Shipments-per-day to continue to strengthen, potentially setting a new third quarter record.
- Higher containerboard volume.
- Attempt to build some inventory ahead of the scheduled maintenance outage at the Deridder mill in October.
Challenges Ahead
- There is one less shipping day for the corrugated business.
- Paper volume will be slightly lower primarily due to the timing of the back-to-school business received in the second quarter.
- Operating and converting costs should be higher primarily due to seasonal electricity usage and prices.
- Slightly higher recycled fiber costs.
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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