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Sep 30, 2020
PCA Q3 2020 Earnings Report
Reported third quarter results with net sales of $1.69 billion and diluted EPS of $1.46.
Key Takeaways
Packaging Corporation of America reported third quarter net income of $139 million, or $1.46 per share. Third quarter net sales were $1.69 billion in 2020, compared to $1.75 billion in 2019.
Set new all-time quarterly records for total box shipments and shipments per day in the Packaging segment.
Containerboard production was 1,048,000 tons.
Containerboard inventory was down 58,000 tons from the third quarter of 2019.
Paper segment sales volume was down 55,000 tons compared to the third quarter of 2019.
PCA
PCA
PCA Revenue by Segment
Revenue by Segment
Packaging Revenue
CapyFin.comPaper Revenue
CapyFin.com Forward Guidance
Looking ahead as we move from the third and into the fourth quarter, in our Packaging segment we expect corrugated products demand to remain strong. Although shipments will be lower than the third quarter with three less shipping days, volume should be higher than last year’s record fourth quarter shipments.
Positive Outlook
- Corrugated products demand to remain strong in the Packaging segment.
- Volume should be higher than last year’s record fourth quarter shipments.
- Higher containerboard production will help build some inventory prior to year-end
- Price increases communicated to containerboard and box customers will be implemented during the quarter and into next year.
- Average export prices to move higher during the fourth quarter.
Challenges Ahead
- Shipments will be lower than the third quarter with three less shipping days
- Seasonally less rich mix in corrugated products compared to the third quarter.
- Paper segment sales volume in the fourth quarter will be lower than the seasonally stronger third quarter
- Freight and scheduled maintenance outage costs to be higher
- Anticipated colder weather, energy costs should be higher as well.
Revenue & Expenses
Visualization of income flow from segment revenue to net income