LAKE FOREST, Ill.--(BUSINESS WIRE)--July 19, 2004--Packaging
Corporation of America (NYSE:PKG) today reported second quarter 2004
net income of $14 million, or $0.13 per share. These results compare
to second quarter 2003 net income of $11 million, or $0.10 per share,
and a first quarter 2004 net loss of $7 million, or $0.06 per share.
Net sales for the second quarter were $467 million. This compares to
$436 million in the second quarter of 2003, and $431 million in the
first quarter of 2004.
Net income for the first six months of 2004 was $7 million, or
$0.06 per share, compared to $18 million, or $0.17 per share, for the
first six months of 2003. Net sales for the first six months of 2004
were $899 million compared to $860 million in the first six months of
2003.
Higher corrugated products and containerboard volume improved
earnings by eight cents per share, and lower interest expense improved
earnings by five cents per share compared to last year's second
quarter. These earnings improvement items were partially offset by
lower pricing and higher transportation costs compared to last year's
second quarter, which reduced earnings by ten cents per share.
PCA's corrugated products volume per workday was up 9.6% compared
to last year's second quarter, and up 5.6% compared to our record
first quarter 2004 volume. Year-to-date corrugated products volume is
up 8.1% compared to last year. PCA's containerboard production in the
second quarter was 578,000 tons, or about 20,000 tons above last
year's second quarter. PCA ended the quarter with its containerboard
inventories down about 17,000 tons compared to the end of the second
quarter last year.
Paul T. Stecko, Chairman and CEO of PCA, said, "We continued to
see record levels for corrugated products demand for the second
consecutive quarter, up a very strong 9.6% over last year's volume. In
order to meet this demand, our mills ran extremely well, setting a new
production record for the quarter, even with two annual mill
maintenance outages. PCA's containerboard and corrugated products
prices both improved, compared to the first quarter, as a result of
recent price increases. Our containerboard inventories remain low, but
are improving as a result of record mill productivity."
"Looking ahead to the third quarter", Mr. Stecko added, "pricing
should continue to improve as we see a full quarter's benefit of
second quarter price increases and begin the realization of our
announced July 1 corrugated products price increase. Both
containerboard and corrugated products should also see some seasonal
volume improvement. Considering these items, we currently expect third
quarter earnings to be about $0.23 - $0.24 per share."
PCA is the sixth largest producer of containerboard and corrugated
packaging products in the United States with sales of $1.7 billion in
2003. PCA operates four paper mills and 66 corrugated product plants
in 26 states across the country.
Conference Call Information:
WHAT: Packaging Corporation of America
Earnings Conference Call
WHEN: Tuesday, July 20, 2004
10:00 a.m. Eastern Time
NUMBER: (866) 814-8448 (U.S. and Canada)
and (703) 639-1367 (International)
Dial in by 9:45 a.m. Eastern Time
Conference Call Leader: Mr. Paul Stecko
WEBCAST: http://www.packagingcorp.com
REBROADCAST DATES: July 20, 2004 12:00 p.m. Eastern Time through
August 3, 2004 11:59 a.m. Eastern Time
REBROADCAST NUMBER: (888) 266-2081 (U.S. and Canada),
or (703) 925-2533 (International)
Passcode: 508177
Some of the statements in this press release are forward-looking
statements. Forward-looking statements include statements about our
future financial condition, our industry and our business strategy.
Statements that contain words such as " will", "should", "anticipate",
"believe", "expect", "intend", "estimate", "hope" or similar
expressions, are forward-looking statements. These forward-looking
statements are based on the current expectations of PCA. Because
forward-looking statements involve inherent risks and uncertainties,
the plans, actions and actual results of PCA could differ materially.
Among the factors that could cause plans, actions and results to
differ materially from PCA's current expectations include the
following: the impact of general economic conditions; containerboard
and corrugated products general industry conditions, including
competition, product demand and product pricing; fluctuation in wood
fiber and recycled fiber costs; fluctuations in purchased energy
costs; and legislative or regulatory requirements, particularly
concerning environmental matters, as well as those identified under
the exhibit "Risk Factors" in PCA's 2002 Annual Report on Form 10-K
filed with the Securities and Exchange Commission and available at the
SEC's website at "www.sec.gov".
Packaging Corporation of America
Consolidated Earnings Results
Unaudited
Three Months Ended June 30,
---------------------------
(in millions, except per share data) 2004 2003
---------- -----------
Net sales $ 467.4 $ 436.5
Cost of sales (394.6) (358.0)
---------- -----------
Gross profit 72.8 78.5
Selling and administrative expenses (32.4) (31.3)
Other income (expense), net 0.2 (3.1)
Corporate overhead (10.5) (10.8)
---------- -----------
Income before interest and taxes 30.1 33.3
Interest expense, net (7.5) (15.7)
---------- -----------
Income before taxes 22.6 17.6
Provision for income taxes (9.0) (6.9)
---------- -----------
Net income $ 13.6 $ 10.7
========== ===========
Earnings per share:
Basic earnings per share $ 0.13 $ 0.10
========== ===========
Diluted earnings per share $ 0.13 $ 0.10
========== ===========
Basic common shares outstanding 106.2 104.4
Diluted common shares outstanding 107.5 106.2
Supplemental financial information:
Capital spending $ 26.2 $ 28.6
Long term debt $ 694.7 $ 738.2
Cash balance $ 91.2 $ 131.5
Packaging Corporation of America
Consolidated Earnings Results
Unaudited
Six Months Ended June 30,
--------------------------
(in millions, except per share data) 2004 2003
---------- -----------
Net sales $ 898.6 $ 859.7
Cost of sales (785.6) (709.0)
---------- -----------
Gross profit 113.0 150.7
Selling and administrative expenses (64.7) (63.1)
Other expense, net (1.0) (5.8)
Corporate overhead (20.8) (21.0)
---------- -----------
Income before interest and taxes 26.5 60.8
Interest expense, net (14.9) (31.5)
---------- -----------
Income before taxes 11.6 29.3
Provision for income taxes (4.8) (11.5)
---------- -----------
Net income $ 6.8 $ 17.8
========== ===========
Earnings per share:
Basic earnings per share $ 0.06 $ 0.17
========== ===========
Diluted earnings per share $ 0.06 $ 0.17
========== ===========
Basic common shares outstanding 106.0 104.5
Diluted common shares outstanding 107.3 106.3
Supplemental financial information:
Capital spending $ 55.4 $ 51.4
CONTACT: Packaging Corporation of America
Barbara Sessions (Investor Relations), 877-454-2509
PCA's Website: www.packagingcorp.com
SOURCE: Packaging Corporation of America
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