PCA reported 4Q 2009 net income of $59 million
Feb 04, 2010. Packaging Corporation of America (PCA) reported 4Q 2009 net income of $59 million, included $44 million from alternative fuel mixture tax credits, and after-tax non-cash charges of $1.2 million from asset disposals related to the announced major energy projects at the Counce and Valdosta mills. Net sales for the 4Q were $532 million compared to $546 million in the 4Q 2008.
Feb 04, 2010. /Lesprom Network/. Packaging Corporation of America (PCA) reported 4Q 2009 net income of $59 million, included $44 million from alternative fuel mixture tax credits, and after-tax non-cash charges of $1.2 million from asset disposals related to the announced major energy projects at the Counce and Valdosta mills. Net sales for the 4Q were $532 million compared to $546 million in the 4Q 2008, the company said in a statement received by Lesprom Network.
Excluding income from alternative fuel mixture tax credits and the asset disposal expenses, net income was $16 million versus 4Q 2008 net income of $30 million. The decrease in earnings was driven by lower containerboard and corrugated products price and mix of $0.32 per share, which was partially offset by higher volume of $0.08 per share and lower costs for energy and transportation of $0.08 and $0.03 per share, respectively.
Net income for full year 2009 was $266 million and excluding alternative fuel mixture tax credits and the energy project asset disposal expenses, earnings were $96 million compared to $136 million in 2008. Net sales for 2009 were $2.15 billion compared to $2.36 billion in 2008.
Paul T. Stecko, Chairman and CEO of PCA, said, "Our corrugated products demand was stronger than anticipated in the 4Q with shipments up 8.3% over last year and up 4.3% per workday over the 3Q 2009. Outside sales of containerboard, particularly for export, were also very strong. Improved demand and lower costs helped to offset part of the earnings impact from the drop in prices that has occurred over the past year. Last Friday, however, Pulp & Paper Week, an industry trade publication, reported that prices for containerboard increased in January by $50/$70 per ton depending on region."
PCA is the fifth largest producer of containerboard and corrugated packaging products in the USA. PCA operates four paper mills and 68 corrugated products plants in 26 states across the country.