Packaging Corporation of America Posts Higher 3Q Profit, Revenue

Dow Jones10-22

Packaging Corporation of America posted higher profit and revenue in the third quarter, citing factors such as higher-than-expected sales volumes in its white paper operations.

The producer of containboard products on Wednesday posted a profit of $262.3 million, or $2.93 a share, compared with $226.9 million, or $2.51 a share, in the third quarter.

The company posted revenue of $2.6 billion, compared with $2.3 billion in the year-ago quarter. Wall Street analysts also expected $2.6 billion.

Excluding special items, earnings were $3.04, beating analyst expectations of $2.93, according to FactSet.

Chief Executive Mark Kowlzan said the company posted strong earnings despite continued cost headwinds from freight, recycled fiber and chemicals and some weakness in agricultural end markets in its corrugated business.

The company expects solid corrugated products demand with some seasonal improvement in the fourth quarter, Kowlzan said.

The company expects adjusted fourth-quarter earnings at $2.81 per share, Kowlzan said. Analysts polled by Factset expect $2.77 a share.

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