PCA declares dividend after profitable quarter

PCA declares dividend after profitable quarter
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Lake Forest, Illinois-based Packaging Corporation of America (PCA) says its board of directors has approved a quarterly dividend of 55 cents per share on its common stock related to its 2016 first quarter that ended March 31.

The quarterly dividend will be paid to shareholders of record as of June 15, 2016, says PCA, with a payment date of July 15.

The company had earlier reported what it calls “record first quarter net income of $104 million, or $1.09 per share.” That compared to first quarter 2015 net income of $100 million, or $1.01 per share. PCA’s first quarter net sales were $1.4 billion in both 2015 and 2016.

“Overall, our operations performed exceptionally well despite annual maintenance outages at three of our containerboard mills,” says Mark W. Kowlzan, PCA’s chairman and CEO. “Our corrugated products demand was strong, and containerboard inventories ended the quarter flat with last quarter.

“Looking ahead to the second quarter,” Kowlzan continues, “we expect seasonally higher containerboard and corrugated products shipments. White paper prices should begin to improve late in the second quarter as a result of our paper price increases, but the vast majority of any price increase will not be realized until the third quarter. We also expect some seasonal improvement in our energy costs as we move into warmer weather and our share count will be lower due to our repurchases in the first quarter. Prices for containerboard and corrugated products are expected to be slightly lower as a result of the published price decreases. Our annual maintenance outage costs will be about 8 cents per share higher, as we have four scheduled mill outages compared to three in the first quarter. Everything considered, we currently expect second quarter earnings of $1.18 per share.”

PCA describes itself as is the fourth largest producer of containerboard and corrugated packaging products in the United States and the third largest producer of uncoated freesheet paper in North America. The company operates eight paper mills and 92 corrugated products plants and related facilities.
 

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Source: Recycling Today
PCA declares dividend after profitable quarter
<![CDATA[Lake Forest, Illinois-based Packaging Corporation of America (PCA) says its board of directors has approved a quarterly dividend of 55 cents per share on its common stock related to its 2016 first quarter that ended March 31. The quarterly dividend will be paid to shareholders of record as of June 15, 2016, says PCA, with a payment date of July 15. The company had earlier reported what it calls “record first quarter net income of $104 million, or $1.09 per share.” That compared to first quarter 2015 net income of $100 million, or $1.01 per share. PCA’s first quarter net sales were $1.4 billion in both 2015 and 2016. “Overall, our operations performed exceptionally well despite annual maintenance outages at three of our containerboard mills,” says Mark W. Kowlzan, PCA’s chairman and CEO. “Our corrugated products demand was strong, and containerboard inventories ended the quarter flat with last quarter. “Looking ahead to the second quarter,” Kowlzan continues, “we expect seasonally higher containerboard and corrugated products shipments. White paper prices should begin to improve late in the second quarter as a result of our paper price increases, but the vast majority of any price increase will not be realized until the…