KapStone Paper and Packaging Corporation's consolidated net sales of $823 million in the 2Q 2017 increased by $38 million, or 5%, compared to $785 million for the 2Q 2016. Revenue growth in the paper and packaging segment resulted from higher prices and volume, as the company said in the press release received by Lesprom Network.
Operating income of $41 million for the 2Q 2017 decreased by $2 million, or 5%, compared to the 2Q 2016. The lower operating earnings primarily reflect higher fiber costs due to significantly higher OCC costs, the reinstatement of certain employee benefits, higher stock compensation costs, higher manufacturing costs, higher freight costs due to lower export shipments, and higher management incentives; partially offset by higher prices for domestic and export containerboard and kraft paper and lower severance charges.
Matt Kaplan, President and CEO, stated, "KapStone's operations performed better in the 2Q with our mills producing 688,000 tons of paper, or nearly 3% more than 2016, despite the loss from an unplanned mill outage. Demand for our products is strong, and we have been able to successfully implement price increases in the majority of our product lines. Product mix continues to improve as we rely less on exports with our growing domestic demand."
KapStone Paper and Packaging Corporation is the fifth largest producer of containerboard and corrugated packaging products and is the largest kraft paper producer in the United States.
