In PCA’s packaging segment, box shipments were up 31% over the 1Q of last year and up 29% per workday with one additional workday in the 1Q 2014. Excluding Boise, PCA’s corrugated products shipments were up 3.4% in total, and up 1.8% per workday. With strong internal demand, PCA reduced its outside sales of containerboard by 12,000 tons compared to last year’s first quarter. Containerboard production was 821,000 tons, and PCA ended the quarter with its containerboard inventories down 4,000 tons compared to the 1Q 2013. Packaging EBITDA in the 1Q 2014, excluding special items, was $244 million on sales of $1,097 million.
In PCA’s paper segment, office paper shipments were up 5.5% over the 1Q of last year, or about 10,000 tons, but down about 20,000 tons in printing and converting and pressure sensitive grades as a result of last year’s capacity rationalization at the International Falls, MN mill. Prices improved during the quarter as the result of previously announced increases, and total paper inventories fell by about 25,000 tons compared to last year’s 1Q. Paper EBITDA in the 1Q 2014, excluding special items, was $40 million on sales of $309 million.
Commenting on reported results, Mark W. Kowlzan, CEO of PCA, said “We had an outstanding quarter, despite extremely severe weather conditions, driven by strong operations and the acquisition of Boise which was 48% accretive to PCA’s earnings. The integration of Boise with PCA operations remains ahead of schedule and positively impacted 1Q results.”
PCA is the fourth largest producer of containerboard and corrugated packaging products in the United States and the third largest producer of uncoated freesheet paper in North America. PCA operates eight paper mills and 98 corrugated products plants and related facilities.
