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PCA reports drop in earnings/sales

By Randy Thoms Apr 26, 2023 | 6:51 PM

Packaging Corporation of America says earnings for the start of 2023 are down a bit.

The owner of the mill in International Falls reports net income of $190 million over the last three months, compared to $254 million in the same period in 2022.

Company officials say slower consumer spending played a role, which impacted the shipment of containerboard used in box-making.

“Consumer spending continues to be negatively impacted by higher interest rates and persistent inflation along with consumer buying preferences skewed more towards services versus durable and non-durable goods,” states Mark W. Kowlzan, Chairman and Chief Executive Officer in a release.

“After a strong start in January, consumer spending was increasingly softer as the quarter progressed, similar to our box shipments during the quarter.”

Sales thus far have reached $2 billion, slightly down from the $2.1 billion recorded in the first three months of 2022.

The company also suffered from higher freight and logistics costs

“Looking ahead as we move from the first and into the second quarter, although there is one less shipping day for the corrugated business, we expect improved volume in our Packaging segment,” says Kowlzan.

Kowlzan is still bracing for lower prices and higher freight costs to continue to impact operations in the next few months.

PCA is the third largest producer of containerboard products in North America.

It operates eight mills and 88 corrugated products plants and related facilities, including the operation in International Falls.


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