Packaging Corporation of America Reported Solid Results in Q3

SEATTLE (Scrap Monster): Packaging Corporation of America (PCA) reported net income of $139 million or $1.46 per share during the third quarter of 2020. Excluding special items, the company posted net income of $149 million, or $1.57 per share. The quarterly sales totalled $1.69 billion.

The Packaging segment reported income of $222.4 million during the quarter. The total corrugated products shipments were up by 6.4% over the last year’s third quarter. The containerboard production was 1.048 million tons. The containerboard inventory recorded year-on-year decline by 58,000 tons.  The Paper segment income was $7.3 million. The segment sales volume plunged by 55,000 tons compared to the third quarter of 2019.

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Commenting on the results, Mark W. Kowlzan, Chairman and CEO noted that Packaging segment demand remained strong throughout the quarter, whereas the market conditions in Paper segment continued to remain challenged. The notable drop in demand has forced the company to keep the Jackson mill idled for the entire third quarter, he added.

Looking forward into Q4, the company expects strong demand for corrugated products. The shipment volumes are likely to surpass the record Q4 shipments recorded in 2019. PCA foresees scheduled maintenance outages during the initial quarter of 2021.