Packaging Corporation of America reported second quarter 2017 net income of $143 million, or $1.52 per share and $1.52 per share excluding special items. Second quarter net sales were $1.6 billion in 2017 and $1.4 billion in 2016. Excluding special items, the $.27 per share increase in second quarter 2017 earnings compared to the second quarter of 2016, was driven primarily by higher prices and mix ($.25), sales volumes ($.09), and production volumes ($.03) in our Packaging segment, lower annual maintenance outage costs ($.05), lower taxes ($.06) and a partial insurance recovery related to the DeRidder Mill incident ($.02). These items were partially offset by higher costs for energy ($.06), fiber ($.05), labor ($.03) and chemicals ($.01), higher freight ($.02), interest ($.02), depreciation ($.02) and other expenses ($.01), and lower Paper segment prices and mix ($.01). Click Read More below for additional details.
American Forest & Paper Association (AF&PA) President and CEO Donna Harman issued the following statement regarding the anti-circumvention petitions filed on August 2 by several U.S. manufacturers and the United Steelworkers with the U.S. Commerce Department and the U.S. International Trade Commission for uncoated freesheet paper in rolls from Australia, China, Indonesia, Brazil and Portugal.
“AF&PA supports free and fair trade policies. U.S. trade laws include provisions to ensure that U.S. companies and workers are not harmed by foreign unfair trade practices. The petitions represent an effort to ensure that foreign producers do not circumvent the payment of anti-dumping and anti-subsidy duties on uncoated free sheet paper in sheet form that have been in place since early 2016 by importing sheeter rolls into the U.S. that are then converted into sheet form. We encourage the U.S. Commerce Department and the U.S. International Trade Commission to review carefully the evidence provided in the petitions and to make a determination as quickly as possible.
“The U.S. paper industry operates in a highly-competitive global market. Government enforcement of domestic and international trade rules is important to safeguard the health of the U.S. paper industry and for markets to function properly.”