PCA reports profitable 2021

Lake Forest, Illinois-based Packaging Corp. of America (PCA) has reported year-end figures for 2021 that include increases in net sales and earnings before interest, taxes, depreciation and amortization (EBITDA).

On the sales front, the company’s $7.73 in 2021 sales represents a 13.9 percent increase over $6.66 billion in 2020. PCA’s 2021 EBITDA of more than $1.66 billion was a 35.9 percent rise from a 2020 figure of $1.23 billion.

The company enjoyed a profitable fourth quarter despite that time period including “certain costs at the Jackson, Alabama, mill for paper-to-containerboard conversion-related activities.” PCA says fourth-quarter market and financial conditions included “higher volumes and higher prices and mix in our Packaging and Paper segments, lower wood fiber and energy costs, lower scheduled maintenance outage expenses and a favorable tax rate.”

Mark W. Kowlzan, chair and CEO of PCA, comments, “Demand in our Packaging segment remained very strong, with our corrugated products plants delivering record fourth-quarter total shipments and all-time record shipments per day that exceeded last year’s extremely strong fourth quarter. We utilized the capability of both machines at our Jackson, Alabama, mill to produce containerboard for the entire quarter, yet inventories, including the additional containerboard inventory from our December acquisition of Advance Packaging, moved lower from the end of September.”

Continues Kowlzan, “Looking ahead as we move from the fourth and into the first quarter, in our Packaging segment we expect to benefit from higher corrugated products shipments with three additional shipping days, and we expect shipments per day to be higher than last year’s first quarter as demand remains strong, along with slightly higher domestic and export prices and mix. Additionally, in our Paper segment, we expect higher prices and mix from our previously announced price increase that was implemented beginning last November.”