Packaging Corporation of America today 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. Packaging segment EBITDA, excluding special items, in the first quarter of 2016 was $235 million with sales of $1.1 billion compared to first quarter 2015 EBITDA of $222 million with sales of $1.1 billion. Paper segment EBITDA, excluding special items, in the first quarter of 2016 was a record $51 million with sales of $281 million compared to first quarter 2015 EBITDA of $49 million with sales of $297 million.
International Paper (IP) intends to stop newsprint production at the Madrid mill in Spain in mid-September, according to Euwid. The sites PM62 will be converted to production of containerboard slated to start in the fourth quarter of this year, as planned. The company is targeting a full ramp-up of the machine for early 2018.
IP acquired the Madrid mill from Holmen in mid-2016 with the aim to make it a mill for recycled corrugated case material. PM 62 has the capacity to produce 330,000 tpy of newsprint.