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Sep 30, 2021
PCA Q3 2021 Earnings Report
Reported third quarter earnings with strong packaging segment demand and implemented price increases.
Key Takeaways
Packaging Corporation of America reported strong third quarter results, driven by robust demand in the packaging segment and successful implementation of price increases. The containerboard mills achieved an all-time quarterly sales volume record, and the box plants set new third quarter records for total corrugated products shipments and shipments per day.
Net income was $251 million, or $2.63 per share.
Net income excluding special items was $257 million, or $2.69 per share.
Net sales reached $2.0 billion compared to $1.7 billion in the previous year.
Packaging segment demand remained strong.
Revenue by Segment
Forward Guidance
The company expects fourth quarter earnings of $2.04 per share.
Positive Outlook
- Continue to implement previously announced price increases for domestic containerboard, corrugated packaging, and paper.
- Average export containerboard prices to move higher.
Challenges Ahead
- Packaging segment volume will be lower due to three less shipping days as well as the scheduled outage at the DeRidder Mill.
- Paper segment volume will be lower as the Jackson Mill is not expected to produce any paper grades.
- Energy costs will increase due to higher gas prices and anticipated colder weather.
- Wood costs, especially in our southern mills, will be higher due to the previous wet weather, low inventory and high demand.
- Inflation to continue with most of our other operating and converting costs, along with higher freight and logistics expenses.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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