Packaging Corporation of America Reports Strong Q3 Earnings

NEW YORK – Packaging Corporation of America (NYSE:PKG) reported third quarter earnings exceeding analyst expectations, driven by robust demand and successful price increases, leading to a 2.46% rise in shares during after-hours trading.

The Lake Forest, Illinois-based company posted adjusted earnings per share of $2.65, surpassing the analyst consensus of $2.49. Revenue increased to $2.18 billion, exceeding estimates of $2.09 billion.

Packaging Corp.'s strong performance was fueled by record demand in its packaging segment. Corrugated product shipments increased 11.1% YoY and 5.8% sequentially. Total shipments were up 12.9% YoY with one additional shipping day.

Mark W. Kowlzan, Chairman and CEO, stated: "We had great implementation of our previously announced containerboard and corrugated products price increases. Very strong demand throughout the quarter led to all-time quarterly records for containerboard production, total box shipments, and shipments per day."

The paper segment also performed well, with sales volume up 4% YoY and 5% sequentially. Kowlzan noted that previously announced price increases were implemented as planned.

Looking ahead, Packaging Corp. expects continued strong demand in its packaging segment, with corrugated shipments per day strengthening further. However, total shipments may be impacted by two fewer shipping days and recent hurricane damage to Florida strawberry crops.

The company forecasts fourth quarter earnings of $2.47 per share, slightly below the current quarter's results due to higher seasonal energy costs and increased chemical costs.

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