Packaging Corporation of America reports record 1Q income

LAKE FOREST - Packaging Corporation of America reported record first quarter net income of $104 million, or $1.09 per share.

Earnings included charges for special items related to facilities closure costs of $1.9 million. Excluding special items, first quarter 2016 net income was $106 million, or a record $1.11 per share, compared to first quarter 2015 net income of $100 million, or $1.01 per share.

First quarter net sales were $1.4 billion in both 2015 and 2016. Excluding special items, the 10 cents per share increase in first quarter 2016 earnings, compared to the first quarter of 2015, was driven primarily by higher containerboard and corrugated products volumes, lower annual mill outage costs, lower costs for fiber, energy, and freight, as well as a lower share count resulting from share repurchases.

These items were partially offset by lower white paper prices and mix, lower containerboard export prices, lower domestic containerboard and corrugated products prices and mix, lower pulp volume, higher labor costs, higher depreciation, higher interest expense, and a state incentive received in 2015 related to investments at our DeRidder mill.