Sector: Consumer Discretionary|Industry: Packaging & Containers|Market Cap: $20.14B|Employees: 14.9K
Packaging Corporation of America (PCA) is the third-largest producer of containerboard products and a leading producer of uncoated freesheet (UFS) paper in North America. They operate eight mills and 86 corrugated products plants, primarily in the United States, serving a wide range of industries, with a focus on regional and local accounts. PCA's competitive advantage stems from its integrated operations, sustainable practices, and strong customer relationships.
Net sales increased by $123.2 million (6.3%) to $2,075.3 million for the three months ended June 30, 2024, compared to $1,952.1 million for the same period in 2023, driven by higher volume in both the Packaging and Paper segments. However, net income decreased by $3.8 million to $198.9 million, primarily due to lower prices and mix, higher operating costs, and a higher tax rate.
Packaging segment net sales increased by $118 million (6.6%) to $1,908 million, driven by higher volume. However, Packaging segment income from operations decreased by $6 million to $279.8 million, indicating that increased sales volume did not fully offset the impact of lower prices and higher costs.
Paper segment net sales increased by $7 million (5.1%) to $150.1 million, driven by higher volume. This indicates a positive trend in the paper segment, which has faced challenges from electronic alternatives.