Packaging Corporation of America has reported second quarter 2002 net income has dropped to $12 million (€12m) compared to second quarter 2001 net income of $31 million.
Net sales for the second quarter were $447 million, compared to $467 million in the second quarter of 2001.
Net income for the first six months of 2002 was $21 million, compared to $59 million for the first six months of 2001. Net sales for the first six months of 2002 were $862 million compared to $922 million in the first six months of 2001.
The two primary factors that affected second quarter earnings compared to last year were price and volume. Lower prices for both containerboard and corrugated products reduced while improved volume in both containerboard and corrugated products increased earnings, but by substantially less.
PCA's containerboard production in the second quarter was 548,000 tons, or 29,000 tons above last year's second quarter. PCA's corrugated products volume was up 3.3 per cent on a per workday basis compared to last year's second quarter, and is up 3 per cent year-to-date. PCA ended the quarter with containerboard inventories down 32,000 tons, or 17 per cent, below year-end 2001 levels and at their lowest level since November 1998.
Paul Stecko, chairman and CEO of PCA, said: "Operationally, we had a very good second quarter. Our mill manufacturing costs were up only 2 per cent despite almost a 35 per cent increase in recycled fibre costs over last year's second quarter. In corrugated products, our volume continued to show steady and solid year-over-year improvement."
PCA is the sixth largest producer of containerboard and corrugated packaging products in the United States with sales of $1.8 billion in 2001. PCA operates four paper mills and 65 corrugated product plants in 25 states across the country.