Packaging Corporation of America Reports Third Quarter 2019 Results
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Packaging Corporation of America (NYSE: PKG) today reported third quarter 2019 net income of $180 million, or $1.89 per share, and net income of $182 million, or $1.92 per share, excluding special items. Third quarter net sales were $1.8 billion in 2019 and 2018.
Reported earnings include $.02 per share of special items expense in the third quarter of 2019, primarily for the disposal of certain fixed assets related to the previously completed conversion of the No. 3 paper machine at our DeRidder, Louisiana mill to containerboard, and $.05 per share in the third quarter of 2018, primarily for certain costs related to discontinuing paper operations associated with the conversion of the No. 3 paper machine at our Wallula, Washington mill to linerboard.
In the Packaging segment, corrugated products shipments were up 1.9% in total and per day, over last year's third quarter. Containerboard production was 1,070,000 tons, and containerboard inventory was down 30,000 tons from the second quarter of 2019 and down 51,000 tons compared to the third quarter of 2018.
In the Paper segment, lower volumes in the third quarter of 2019 compared to last year were primarily due to discontinuing the paper business at the Wallula Mill.
Commenting on reported results, Mark W. Kowlzan, Chairman and CEO, said, “In our Packaging segment, we continued to run our containerboard system to demand in a very cost-effective manner. Our mills supplied the necessary containerboard to achieve new shipment records in our box plants, and our inventory was below last year's and second quarter levels. Average domestic prices were about where we expected based on the changes in the published domestic containerboard prices from earlier this year, however our corrugated products mix was slightly better.”
