Packaging Corporation of America (PCA), a containerboard and corrugated packaging products supplier, has reported a net income of $198.9m in the second quarter (Q2) of financial year 2024 (FY24), down from $202.7m in the same period last year.
The company’s diluted earnings per share also saw a marginal drop to $2.21 in Q2 FY24 from $2.24 in Q2 FY23.
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Despite this, second-quarter net sales showed an increase to $2.07bn compared to $1.95bn in the corresponding quarter of 2023.
The company’s gross profit for the quarter was reported at $437.7m, slightly down from $444.7m in Q2 FY23.
In the company’s Packaging segment, corrugated products shipments per day were up by 9.2% over the previous year’s second quarter, with total shipments increasing by 10.9%, factoring in one additional shipping day.
Containerboard production hit 1,281,000 tons (t), with inventory levels rising by 16,000t compared to Q2 2023.
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By GlobalDataIn PCA’s Paper segment, sales volume rose 12% compared to the second quarter of 2023 but experienced an 8% decrease when compared to Q1 2024.
PCA chair and CEO Mark Kowlzan said: “The quarter reflects our strong market conditions in the Packaging segment. This drove a new all-time containerboard production record in order to service corrugated products and containerboard demand which grew stronger each month, ending with a new corrugated shipments-per-day record for the month of June.
“We were also able to build some inventory ahead of what we expect to be a busy second half of the year. Packaging segment prices and mix moved higher from first-quarter levels as we continue to implement our announced price increases.”
PCA has a network of eight mills and 86 corrugated products plants and related facilities.
