Packaging Corporation of America announced that it has discontinued production of uncoated freesheet (UFS) grades on the No. 3 paper machine at its Jackson, AL mill and will begin preparing for the permanent conversion of the machine to linerboard. As previously disclosed, in order to meet strong packaging demand and maintain appropriate inventory levels, the machine temporarily began producing linerboard in the fourth quarter of 2020 and continued producing linerboard in the first quarter of 2021. The mill will now begin preparations to permanently convert the 365,000 ton-per-year No. 3 UFS paper machine to a 700,000 ton-per-year high-performance, virgin kraft linerboard machine, in a phased approach, over the next 36 months. Plans are for the machine to run at its current containerboard production rate for the next 12 to 15 months until the scheduled first phase outage is taken in the second quarter of 2022.
Dear Industry Member: The Postal Service is conducting a survey on the potential use of a larger size First Class Mail postcard and has asked ACMA and others to pass it on to our industries. The USPS says your feedback “will provide great insights for us to consider during the decision-making process.” SURVEY LINK: https://uspsci.allegiancetech.com/cgi-bin/qwebcorporate.dll?idx=F38Y58 The survey began February 24th and will remain open until Wednesday, March 10th.
The Association of American Publishers (AAP) today released its StatShot report for December 2020 reflecting reported revenue for all tracked categories, including Trade (Consumer Books), K-12 Instructional Materials, Higher Education Course Materials, Professional Publishing, and University Presses. Total revenues across all categories for December 2020 were down 8.5% as compared to December 2019, coming in at $1.1 billion. Year-to-date sales were flat, with an increase of 0.1% as compared to calendar 2019, with a total of $14.8 billion. Trade (Consumer Books) sales were up 9.5% in December, coming in at $796.1 million. For January-December 2020 Trade sales were up 9.7% as compared to the same period last year, coming in at $8.6 billion. In terms of physical paper format revenues during the month of December, in the Trade (Consumer Books) category, Hardback revenues were up 14.2%, coming in at $312.5 million; Paperbacks were up 2.4%, with $248.1 million in revenue; Mass Market was down 1.6% to $25.9 million; and Board Books were up 6.2%, with $16.7 million in revenue.
In a result no one in publishing would have predicted last spring when Covid-19 first hit the U.S., book publishing sales finished 2020 flat with 2019 based on year-end figures supplied by 1,354 publishers to AAP’s StatShot program. The two major trade categories, adult books and children/young adult, had gains of 12% and 6.4%, respectively, while the two big educational segments saw declines. With many public schools teaching remotely for long stretches of last year, sales of K-12 instructional materials fell 19.6% in 2020 compared to 2019. Sales of higher educational course materials declined 4.3% last year as many colleges and university turned to hybrid instruction, which changed buying habits by students.
Revenues decreased by $83.1 million, or 11.8%, from $705.8 million in the first quarter of 2020 to $622.7 million in the corresponding period of 2021. This decline is mainly attributable to lower volume in the Printing Sector due to the impact of the COVID-19 pandemic and the sale of the paper packaging operations, which occurred toward the end of the first quarter of the previous year. This decrease was partially mitigated by the solid organic growth in revenues in the Packaging Sector and the revenues generated by the acquisition of Artisan Complete Limited in the Printing Sector. Operating earnings increased by $6.4 million, or 15.7%, from $40.8 million in the first quarter of 2020 to $47.2 million in the first quarter of 2021. The increase in operating earnings is explained by the organic growth in the Packaging Sector. In addition, in the Printing Sector, initiatives to optimize operational efficiency and the Canada Emergency Wage Subsidy offset a majority of the decrease in volume. Net earnings attributable to shareholders of the Corporation increased by $21.3 million, from $6.4 million in the first quarter of 2020 to $27.7 million in the first quarter of 2021. This increase is mostly explained by the income tax expense related to the sale of the paper packaging operations in the first quarter of 2020, higher operating earnings and the decrease in net financial expenses resulting from a reduction in net indebtedness and a lower weighted average interest rate.
Fourth Quarter Financial Highlights and Recent Events * Total revenue increased by 11.1% to $54.6 million, from $49.2 million in the fourth quarter of 2019. * Envelope segment revenue was up 13.2% to $40.5 million, from $35.7 million in the fourth quarter of 2019. * Packaging and specialty products segment revenue increased by 5.4% to $14.2 million, from $13.4 million. * EBITDA1was $4.6 million, down from $6.8 million in the fourth quarter of 2019 resulting primarily from a non-cash asset impairment charge of $2.8 million and a restructuring expense of $1.8 million. * Net Earnings at $0.3 million, down from $2.3 million in the fourth quarter of 2019 from the above mentioned non-recurring items. Fiscal Year Financial Highlights * Total revenue increased by 6.7% to $204.6 million, from $191.7 million in 2019. * Envelope segment revenue was up 6.8% to $146.5 million, from $137.1 million in 2019. * Packaging and specialty products segment revenue was up 6.5% to $58.1 million, from $54.5 million. * EBITDA1 was $27.2 million, which include a fourth quarter non-cash asset impairment charge of $2.8 million and restructuring expenses of $1.8 million, up $1.9 million from $25.3 million in 2019. * Net Earnings were $7.5 million, which include the above mentioned non-recurring items, increased $0.4 million from $7.1 million in 2019.
For the fourth quarter of 2020, Clearwater Paper reported net sales of $453 million, a 4.0% increase compared to net sales of $435 million reported in the fourth quarter of 2019. Net income for the fourth quarter of 2020 was $23 million, compared to net income in the fourth quarter of 2019 of $2 million. On a non-GAAP basis, Clearwater Paper reported adjusted net income in the fourth quarter of 2020 of $25 million, compared to fourth quarter 2019 adjusted net income of $6 million. For the full year 2020, Clearwater Paper reported net sales of $1.9 billion, a 6.1% increase compared to net sales of $1.8 billion for 2019. Net income for the full year was $77 million in 2020, compared to a net loss for 2019 of $6 million. On a non-GAAP basis, Clearwater Paper reported adjusted net income for 2020 of $89 million, compared to 2019 adjusted net income of $4 million.
For durable, high strength labelling to withstand extreme conditions. Lecta expands its portfolio of Adestor pressure-sensitive products for the industrial, logistics and healthcare industries with the launch of Adestor PET Laser MW. The new Adestor PET Laser Matt White facestock provides excellent performance for outdoor labelling and durable applications (high resistance to water, chemicals and fluctuating temperatures). This new product is HP Indigo certified and ideal for use with variable data printing technologies.
Whether delivery or takeout, as a weekday reprieve from cooking or festive food for a weekend celebration, people love their pizza. Over the course of a year in the U.S., people consume an estimated 3 billion pizzas. And during February’s Super Bowl game, Domino’s pizza in the U.S. typically sells around 2 million pizzas. The love for pizza has longevity, too. According to a Reader’s Digest poll, the single food that most Americans would want to eat for the rest of their lives is pizza. While we can debate Hawaiian versus pepperoni and turn our noses up at anchovies, there’s no agreeing to disagree on this: Pizza boxes can be recycled. There’s proof. Mired in myth, and confused by cheese and grease, people have been burying the pizza box in their trash bins, assuming it cannot be recycled. Allow me to set the record straight – it can!
National Average Price for Regular Unleaded Current: $2.699; Month Ago: $2.400; Year Ago: $2.472. National Average Price for Diesel Current: $2.908; Month Ago: $2.640; Year Ago: $2.871