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Dec 31, 2023
PCA Q4 2023 Earnings Report
PCA reported Q4 2023 results with net income of $189 million and EPS of $2.10.
Key Takeaways
Packaging Corporation of America reported fourth quarter net income of $189 million, or $2.10 per share. Excluding special items, net income was $192 million, or $2.13 per share. Net sales for the fourth quarter were $1.94 billion.
Packaging segment demand was stronger than expected.
Higher packaging volume, capital spending program benefits, and cost management drove lower operating costs.
Excellent restart of Wallula, WA mill's No. 3 machine to meet demand and build inventory.
Paper segment had very good results with volume slightly higher than expected and costs managed extremely well.
PCA
PCA
PCA Revenue by Segment
Revenue by Segment
Packaging Revenue
CapyFin.comPaper Revenue
CapyFin.com Forward Guidance
PCA expects first quarter earnings of $1.54 per share.
Positive Outlook
- Higher total corrugated products shipments expected from continued strong demand.
- Two additional shipping days in the first quarter.
- Prices and mix should be slightly higher with the implementation of announced January price increases.
- Export prices expected to be fairly flat.
- Improved mix to move prices slightly higher with flat sales volume in the Paper segment.
Challenges Ahead
- Containerboard volume will be lower due to downtime associated with the conversion of the No. 3 machine at our Jackson Mill and a scheduled maintenance outage at our Counce, TN mill.
- Recycled fiber and energy prices will be higher.
- Above average, seasonally colder weather will negatively impact usages and yields for energy, wood and chemicals.
- Higher operating costs associated with the restart of full operations at the Wallula mill compared to fourth quarter operations.
- Scheduled outage expenses will be higher and will include the significant first quarter impact of the conversion outage at our Jackson Mill which is estimated to be ($.16) per share.
Revenue & Expenses
Visualization of income flow from segment revenue to net income