PCA earnings rise in 2024

Packaging Corp. of America (PCA), Lake Forest, Illinois, has reported increased net income figures for the fourth quarter and full year of 2024 net that surpass its net income levels from 2023.

The company, which operates eight paper and board mills in North America, has reported fourth-quarter 2024 net income of $221.1 million, which is up 16.9 percent from the fourth quarter of 2023. In all of 2024, PCA’s $805.1 million of net income is up by 5.2 percent from the 2023 figure of $765.2 million.

PCA achieved its improved reported earnings in 2024 despite recording some costs at its Jackson, Alabama, mill for paper-to-containerboard conversion-related activities during the time frame.

In its Packaging segment, PCA's total corrugated product shipments and shipments per day were up 9.1 percent in the fourth quarter of 2024 compared with the prior year. As well, shipments per day were up 3.2 percent in the final quarter of last year compared with the third quarter of 2024.

PCA lists its containerboard production volume at more than 1.3 million tons in last year’s fourth quarter. In its Paper segment, PCA's sales volume was up 5 percent compared with the fourth quarter of 2023 and down 5 percent from what it calls a seasonally stronger third quarter of 2024.

“As we have seen throughout the year, demand in our Packaging segment during the quarter remained very strong,” PCA Chairman and CEO Mark W. Kowlzan says.

“Our corrugated products plants delivered record fourth quarter total shipments and an all-time record shipments per day. The plants also set new annual records for total shipments and shipments per day. Excellent operations throughout our mill containerboard system set new quarterly and annual production records, as well. This allowed us to meet our customers' demand needs in a timely manner as well as achieve year-end inventory targets ahead of the mill outages scheduled for the first half of 2025.”

Regarding the year now underway, Kowlzan says, “In our Packaging segment, although seasonally slower, we expect volume in our corrugated products plants to set new first quarter records for total shipments and shipments per day. Containerboard volume will be lower with two less operating days and scheduled maintenance outages at our Counce, Tennessee, and Valdosta, Georgia, mills.”

“Domestic prices will be higher with an improved product mix together with our previously announced price increases. Export prices are assumed to be stable. In our Paper segment, we forecast slightly lower volume with two less mill operating days and prices and mix to be fairly flat. With the exception of recycled fiber prices, we expect price inflation across most of our direct, indirect and fixed operating and converting costs along with a higher cost mix of mill operations.”

PCA is of the largest producers of containerboard products and a leading producer of uncoated freesheet paper in North America. According to the firm’s most recent sustainability report, PCA mills consumed more than 1 million tons of recovered paper in 2023.