PCA's Corrugated Shipments Surged Significantly in Q4 2020
Paper Recycling | 2021-01-29 13:10:22
The annual sales were down marginally from $7.0 billion in 2019 to $6.7 billion in 2020.
By Paul Ploumis
SEATTLE (Scrap Monster): Packaging Corporation of America (PCA) reported fourth quarter 2020 net income of $124 million or $1.30 per share. Excluding special items, the company reported net income of $127 million or $1.33 per share. The quarterly sales remained unchanged at $1.7 billion.
The full year 2020 net income was $461 million or $4.84 per share. The net income excluding special items stood at $550 million or $5.78 per share. The annual sales were down marginally from $7.0 billion in 2019 to $6.7 billion in 2020.
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The total corrugated product shipments were up 9.9% in Q4 last year, with shipments per day surging higher by 11.7% over the same quarter a year before. The containerboard production totalled 1.174 million tons. The inventory was down by 13,000 from Q4 2019. The paper segment sales volume plunged by 80,000 tons year-on-year.
Commenting on the results, Mark W. Kowlzan, Chairman and CEO, PCA noted that the sales volumes in both containerboard mills and corrugated products plants hit all-time record. The robust results demonstrate the tremendous resilience of its workers to overcome adversities. Looking ahead, the packaging segment shipments in Q1 2021 are expected to exceed those of Q1 2020, on account of strong demand. The colder weather conditions may lead to higher energy and wood costs. At the same time, PCA expects higher prices for recycled fiber, added Kowlzan.
