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Dec 31, 2019

PCA Q4 2019 Earnings Report

PCA reported Q4 2019 results with net sales of $1.7 billion and earnings per share of $1.43.

Key Takeaways

Packaging Corporation of America reported fourth quarter 2019 net income of $136 million, or $1.43 per share. Excluding special items, net income was $163 million, or $1.71 per share. Fourth quarter net sales were $1.7 billion.

Net income for Q4 2019 was $136 million, or $1.43 per share.

Excluding special items, net income for Q4 2019 was $163 million, or $1.71 per share.

Q4 net sales were $1.7 billion, consistent with 2018.

Total corrugated products shipments increased by 2.3% with one additional workday.

Total Revenue
$1.72B
Previous year: $1.75B
-1.5%
EPS
$1.71
Previous year: $2.17
-21.2%
Containerboard Production
1.08M
Gross Profit
$383M
Previous year: $425M
-9.9%
Cash and Equivalents
$680M
Previous year: $362M
+88.0%
Free Cash Flow
$194M
Previous year: $199M
-2.5%
Total Assets
$7.24B
Previous year: $6.57B
+10.1%

PCA

PCA

PCA Revenue by Segment

Forward Guidance

The company expects first quarter earnings of $1.20 per share.

Challenges Ahead

  • Lower prices in the Packaging segment due to domestic containerboard price decreases.
  • Lower export prices.
  • Lower containerboard volumes due to scheduled outages at three largest mills.
  • Lower Paper segment volumes due to better than expected levels in Q4 and a scheduled outage at the Jackson Mill.
  • Significantly higher scheduled outage costs.

Revenue & Expenses

Visualization of income flow from segment revenue to net income