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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.
PCA
PCA
PCA Revenue by Segment
Revenue by Segment
Packaging Revenue
CapyFin.comPaper Revenue
CapyFin.comCorporate and Other Revenue
CapyFin.com 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.
- Scheduled outage expenses expected to be slightly lower.
Revenue & Expenses
Visualization of income flow from segment revenue to net income