The Lake Forest-based company saw earnings drop to $2.15 a share from $2.67 a year ago. On an adjusted basis, the firm hit $2.35 a share, narrowly outpacing the $2.31 consensus estimate from FactSet analysts. Revenue growth remained robust, climbing from $2.17 billion in the previous year, largely buoyed by a 24% surge in total corrugated-product shipments when including the acquisition of the Greif business.
In section Market Quotes
Packaging Corp. of America Profit Dips as Operational Costs Mount
A 2.7% slide in after-hours trading greeted Packaging Corp. of America on Wednesday, as the cardboard-box manufacturer reported a second-quarter profit decline to $192.1 million. Despite a significant revenue jump to $2.49 billion, persistent cost pressures tied to facility closures and acquisitions weighed heavily on the bottom line.
Chief Executive Mark Kowlzan pointed to a divergent outlook for the coming months. While the company expects sustained demand within its core packaging segment, the paper division faces a mix of lower volumes and elevated pricing, exacerbated by scheduled maintenance outages. Looking ahead to the third quarter, the company projected adjusted earnings of $2.91 a share, falling slightly short of the $2.94 anticipated by market analysts.
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