Jan 27 (Reuters) - Packaging Corp of America PKG.N missed Wall Street estimates for fourth-quarter profit and revenue on Tuesday, weighed down by softer sales in its core packaging segment and higher operating costs.
Shares of the company were down 2% in after-market trading.
The company has been grappling with weak demand in the consumer goods sector, as major customers such as Procter & Gamble PG.N, McDonald's MCD.N and Conagra Brands CAG.N pull back on orders amid rising inflation and macroeconomic uncertainty.
Last month, Packaging Corp said it would shut down a facility in Washington, resulting in about $205 million in charges and a job cut of roughly 200 employees.
The Lake Forest, Illinois-based company supplies paper and packaging products to customers in the food and beverages, paper products and the retail trade industries.
CEO Mark Kowlzan said corrugated shipments dipped slightly from the record levels seen in 2024, reflecting a seasonally softer mix driven by strong holiday e-commerce demand and ongoing inventory discipline from customers.
The company's fourth-quarter adjusted profit came in at $2.32 per share, below analysts' expectations of $2.41 apiece, according to data compiled by LSEG.
Total revenue for the quarter ended December 31 was $2.36 billion, below analysts' expectations of $2.44 billion.
The company said it is still assessing the impact of last weekend's winter storm, which forced temporary shutdowns at several plants and may weigh on shipments as well as operating and transportation costs.
(Reporting by Megavarshini G. Somasundaram and Apratim Sarkar in Bengaluru; Editing by Alan Barona)
((Megavarshini.SomasundaramGnanasundari@thomsonreuters.com))
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