Excluding special items, 4Q 2014 net income was $114 million, or $1.16 per share, compared to 4Q 2013 net income of $102 million, or $1.05 per share, and 3Q 2014 net income of $124 million, or $1.26 per share.
4Q net sales were $1.434 billion compared to 4Q 2013 net sales of $1.264 billion and 3Q 2014 net sales of $1.519 billion.
Full year earnings were $393 million, or $3.99 per share, compared to 2013 earnings of $441 million, or $4.52 per share. Full year 2014 earnings, excluding special items, were a record $459 million, or $4.66 per share, compared to 2013 earnings, excluding special items, of $325 million, or $3.33 per share.
Full year 2014 net sales were a record $5.9 billion compared to 2013 net sales of $3.7 billion.
Packaging segment EBITDA in the 4Q 2014 was $239 million, and excluding special items, was $250 million with sales of $1.122 billion. For the year, EBITDA was $986 million, and excluding special items, was $1.015 billion with full year sales of $4.54 billion.
Paper segment EBITDA in the 4Q 2014 was $45 million and sales were $284 million. For the year, EBITDA was $186 million and sales were $1.2 billion.
Commenting on reported results for the quarter and full year, Mark W. Kowlzan, CEO, said “We had a solid quarter with strong corrugated products demand, productive mill operations, and a successful rebuild and start-up of the D3 machine. As a result of the D3 production, we were able to reduce the outside purchases of containerboard from about 17,000 tons per month to 4,500 tons in December. Excluding special items, our 2014 earnings of $4.66 per share were up 40% over 2013’s record earnings, and total company EBITDA was $1.144 billion, up $393 million, or 52% over 2013. This earnings improvement was driven primarily by the Boise acquisition, including synergies realized.”
“Looking ahead to the 1Q,” Mr. Kowlzan added, “we expect lost containerboard production of about 60,000 tons and higher operating costs from annual maintenance downtime at our two largest containerboard mills and two less production days compared to the 4Q. This will be essentially offset by lower amortization of annual outage repair costs. Corrugated products shipments are expected to be seasonally lower, and white paper prices are expected to be lower with a full quarter’s impact of published price changes. Seasonally colder weather will increase wood, energy and chemical costs. In addition, labor and benefit costs will be higher with timing related payments and annual wage increases. These items will be partially offset by higher production on the D3 paper machine and lower interest expense. We currently expect 1Q earnings of $1.07 to $1.10 per share.”
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.
