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Dec 31, 2021
PCA Q4 2021 Earnings Report
Reported fourth quarter earnings with strong packaging segment performance and effective price increase implementations.
Key Takeaways
Packaging Corporation of America reported a strong fourth quarter in 2021 with net income of $217 million, or $2.28 per share. Excluding special items, net income was $262 million, or $2.76 per share. The company benefited from strong demand in the packaging segment and successful implementation of price increases.
Packaging segment delivered record fourth quarter total shipments and an all-time record shipments per day.
Implemented containerboard and corrugated products price increases effectively.
Utilized remaining $193 million of share repurchase authorization to buyback over 1.4 million shares.
Inflation in operating and freight costs was offset by strong market conditions and operational execution.
PCA
PCA
PCA Revenue by Segment
Revenue by Segment
Packaging Revenue
CapyFin.comPaper Revenue
CapyFin.comCorporate and Other Revenue
CapyFin.com Forward Guidance
PCA anticipates first quarter earnings of $2.50 per share, excluding any potential benefit from a communicated containerboard price increase, while facing significant inflation and increased labor costs.
Positive Outlook
- Higher corrugated products shipments due to three additional shipping days.
- Shipments per day expected to be higher than the previous year's first quarter.
- Slightly higher domestic and export prices and mix in the Packaging segment.
- Higher prices and mix expected from previously announced price increase in the Paper segment.
- Lower scheduled outage expenses expected.
Challenges Ahead
- Continued higher inflation across operating and converting costs.
- Increased freight and logistics expenses.
- Higher labor and benefits costs due to timing-related increases.
- Seasonally colder weather expected to increase energy and wood costs.
- Potential accounting charges, fees, and expenses for paper-to-containerboard conversion activities at the Jackson, AL mill.
Revenue & Expenses
Visualization of income flow from segment revenue to net income