Packaging Misses Zacks Estimates - Analyst Blog
19 Aprile 2011 - 11:00AM
Zacks
Packaging Corporation of
America (PKG) reported net sales of $629.5 million in the
first quarter of 2011, up 14.3% from the year-earlier quarter,
and ahead of the Zacks Consensus Estimate of $628
million.
Corrugated products shipments
improved 3.1% from the year-earlier quarter. Outside sales of
containerboard were up 1% from the year-earlier quarter.
Containerboard production increased 5.8% from the year-earlier
quarter to 602,000 tons.
Exiting the quarter, the company’s
containerboard inventories were down 8,000 tons from the previous
year end.
Gross margin improved to 21.1% from
15.7% in the year-ago quarter. Net income came in at $37.4 million
or 37 cents per share compared with a net income of $19.2 million
or 19 cents in the year-earlier quarter.
Excluding fuel credits and asset
disposal charges, net income improved to $39.5 million or 39 cents
per share from $12.5 million or 12 cents per share in the
year-earlier quarter. The results missed the company’s estimate of
42 cents and the Zacks Consensus Estimate of 41 cents.
The results took a beating due to
cost inflation, severe weather issues and two annual maintenance
outages. However, the results were positively influenced by
increased prices, solid corrugated products volume and superior
production at mill.
Management stated that it plans to
complete annual maintenance and major capital project work in the
second quarter of fiscal 2011. This will result in a production
loss of 39,000 tons. For the second quarter of fiscal 2011, the
company projects earnings of 35 cents per share, including the
impact of production losses and increased cost of chemicals,
transportation and energy.
Packaging Corporation is the fifth
largest producer of containerboard and corrugated packaging
products in the United States. The company competes
with International Paper
Co. (IP) and
Smurfit-Stone Container
Corp. (SSCC).
The results of the first quarter of
fiscal 2011 were not at all encouraging; shares of Packaging
Corporation were down 4.79% and closed at $26.25 in after-hours
trading. In regular trading, shares were down 2.13% and closed at
$27.57.
INTL PAPER (IP): Free Stock Analysis Report
PACKAGING CORP (PKG): Free Stock Analysis Report
SMURFIT-STN NEW (SSCC): Free Stock Analysis Report
Zacks Investment Research
Grafico Azioni Smurfit-Stone Container Corp. Common Stock (NYSE:SSCC)
Storico
Da Ago 2024 a Set 2024
Grafico Azioni Smurfit-Stone Container Corp. Common Stock (NYSE:SSCC)
Storico
Da Set 2023 a Set 2024