Quarterly Update for Q2 2015 - Report on Packaging Corporation of America

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Jul 30, 2015, 09:30 ET

NEW YORK, July 30, 2015 /PRNewswire/ --

ACI Association has initiated research coverage on Packaging Corporation of America (NASDAQ: PKG). Select highlights from the internally released reports are being made available to the general public (included below), with access to the entirety of the research available to new members.

Today, membership is open to readers on a complementary basis at the following URL: http://www.aciassociation.com/?c=PKG

Highlights from our PKG Report include:

Top-line growth - On July 21, 2015, Packaging Corporation of America released results for the second quarter of 2015. The Company generated gross profit of $323.7 million, higher than $310.8 million in Q2 2014 and $277.0 million in Q1 2015. Net sales for the period amounted to $1.45 billion, compared to $1.47 billion in the previous year quarter.

Packaging segment performance - The Company's packaging segment recorded sales of $1.1 billion, at par with the previous year quarter level. However, segment income rose from $166.4 million in Q2 2014 to $194.6 million in Q2 2015. EBITDA for the period stood at $266.7 million, more than $253.8 million in prior year quarter.

Paper segment results - The paper segment of the Company generated sales of $281.1 million, lower than $295.2 million in previous year quarter. In addition, the segment's income declined to $23.4 million in Q2 2015, from $33.6 million in same period last year. Further, EBITDA for the period stood at $37.1 million, a decrease from $45.9 million in the prior year quarter.

Operating performance at glance - In Q2 2015, the Company's EBITDA was recorded at $284.4 million, less than $281.8 million in the previous year quarter. However, EBITDA excluding special items for the period stood at $287.1 million, compared to $287.3 million in Q2 2014.

Management outlook for third quarter - Commenting on the outlook for third quarter of 2015, Mark W. Kowlzan, CEO of Packaging Corporation of America said, "Looking ahead to the third quarter, we expect higher containerboard, corrugated products and white paper shipments, lower mill annual outage costs, and lower chemical costs. White paper prices are expected to be lower with announced price changes in industry trade publications."

To find out how this influences our rating on Packaging Corporation of America read the full report in its entirety here: http://www.aciassociation.com/?c=PKG

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