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Sep 30, 2022
PCA Q3 2022 Earnings Report
Net income and sales increased, driven by higher prices and mix in the Packaging and Paper segments, and offset by higher operating costs and lower volume in the Packaging and Paper segments.
Key Takeaways
Packaging Corporation of America reported third quarter 2022 net income of $262 million, or $2.80 per share, and net sales of $2.1 billion. Excluding special items, net income was $266 million, or $2.83 per share.
Net income was $262 million, or $2.80 per share.
Net income, excluding special items, was $266 million, or $2.83 per share.
Net sales were $2.1 billion.
Total corrugated products shipments and shipments per day were down (6.0%) over last year’s third quarter.
PCA
PCA
PCA Revenue by Segment
Revenue by Segment
Packaging Revenue
CapyFin.comPaper Revenue
CapyFin.com Forward Guidance
The company expects fourth quarter earnings of $2.22 per share.
Positive Outlook
- Implementation of price increase in the Paper segment will continue.
- Price increases in the Packaging segment continued to generate excellent results
- Mills and plants remained focused on lowering operating costs through process efficiency optimization efforts and material usage initiatives.
- Containerboard system run in a very cost-effective manner to match supply with demand
- Scheduled outages in mills were executed very well.
Challenges Ahead
- Most of the issues that impacted third quarter Packaging segment demand continuing
- Box plants will have four less shipping days in the fourth quarter
- Expect a seasonally less rich mix in corrugated products
- Expect lower average export containerboard prices
- Scheduled outage expenses will be higher, and we expect slightly higher operating costs, primarily labor and benefit expenses, along with anticipated colder weather resulting in higher energy costs.
Revenue & Expenses
Visualization of income flow from segment revenue to net income