Packaging Corporation of America (PCA) reported 2Q 2020 net income of $57 million, or $0.59 per share, and net income of $132 million, or $1.38 per share, excluding special items. 2Q net sales were $1.54 billion in 2020 and $1.76 billion in 2019.
Commenting on reported results, Mark W. Kowlzan, Chairman and CEO, said, “In the Packaging segment, our mills supplied the necessary containerboard to achieve a second quarter record for box shipments per day. We ran our containerboard system to demand while building some much-needed inventory as we began the second quarter with containerboard inventories at our lowest levels since the Boise acquisition and ended the quarter with our weeks-of-inventory supply still below our average over the last five years. All of our mills and corrugated products plants exhibited outstanding cost control throughout the quarter. In addition, we are seeing the benefits of our corrugated products capital spending strategy reflected in our box plant volume improvement as well as operating and converting cost reductions and efficiencies. We also saw the benefits from some of our mill cost reduction projects especially in the areas of energy and fiber. As previously communicated in April and again in late June, market conditions in the Paper segment continue to be challenged as nationwide responses to help control the spread of the COVID-19 virus have resulted in a dramatic decrease in demand for our cut-size office papers. Our Jackson, AL mill was temporarily idled for two months during the 2Q, and we expect the mill to stay down at least through the end of August.”
PCA is the third largest producer of containerboard products and the third largest producer of uncoated freesheet paper in North America. PCA operates eight mills and 93 corrugated products plants and related facilities.
