PKG - Packaging Corp. pops post-market on earnings beat

Packaging Corporation of America (NYSE:PKG) shares are pressing gains in extended trading on Monday.  The Lake Forest, Illinois-based reported first quarter earnings per share of $2.72 and net sales of $2.14 billion, exceeding expectations set at $2.52 and $2.05 billion respectively when accounting for special items. “Packaging segment demand remained very strong in the first quarter as we set a new all-time record for total box shipments and new first quarter records for box shipments per day and for containerboard volume,” CEO Mark W. Kowlzan said. “Although we still face unprecedented inflationary headwinds, our incessant focus on operational efficiency, cost reduction initiatives, and capital project execution contributes greatly to minimize this impact and maximize our operating margins.” Per the company’s financial statements, a $200 million increase in the cost of sales from the prior year was counteracted by price increases that raised gross profit by $130 million year over year.

For further details see:

Packaging Corp. pops post-market on earnings beat