Packaging Corporation Announced Robust Results for Q4 and Full Year 2018

SEATTLE (Scrap Monster): Packaging Corporation of America declared results for the fourth quarter and full year 2018.

The company’s full year income totaled $738 million or $7.80 per diluted share in 2018, as compared with $7.07 per diluted share in 2017. Excluding special items, the earnings per share stood at $8.03, which is significantly higher when compared with $6.02 in 2017. The special items include costs associated with discontinuing of operations on account of conversion of PM3 into linerboard at its Wallula, Washington mill facility.

The full year 2018 net sales totaled $7.01 billion, when compared with the net sales of $6.44 billion in the year prior to that.

The Q4 ’18 net income totaled $205 million or $2.16 per diluted share, as compared with $2.84 per share in Q4 of 2017. The results exceeded the guidance of $2.15 per share, mainly aided by improved product mix and better prices in Packaging and Paper segments and lower indirect mill costs and lower tax rate. The EPS after excluding special items totaled $2.17 per share, upon comparison with $1.56 in fourth quarter of 2017. The quarterly sales totaled $1.75 million in the last quarter of 2018.

Mark W. Kowlzan, Chairman and CEO, Packaging Corporation of America noted that its containerboard mills reported record Q4 production in 2018. The per-day box shipments too hit a new record during the quarter. The containerboard inventory witnessed a reduction of 26,000 tons as compared with the end-Q3 ’18 levels, Kowlzan said.

Looking forward, the company expects continued strong demand in Packaging segment and robust market conditions for Paper segment.