New Threads Only:  Add to Google Reader or Homepage
New Threads & Replies:  Add to Google Reader or Homepage
Forums are for serious investors only. GuruFocus Forum Rules.

Forum List » Business News and Headlines
SEC Filings, Earing Reports, Press Releases
New Topic Search
Goto Thread: PreviousNext
Goto: Forum ListMessage ListNew TopicSearchLog In
Packaging Corp. of America Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: November 6, 2012 04:37PM

Packaging Corp. of America (PKG) filed Quarterly Report for the period ended 2012-09-30. Packaging Corporation Of America has a market cap of $3.47 billion; its shares were traded at around $36.21 with a P/E ratio of 19 and P/S ratio of 1.3. The dividend yield of Packaging Corporation Of America stocks is 2.8%. Packaging Corporation Of America had an annual average earning growth of 3.6% over the past 10 years.



Highlight of Business Operations:

Net sales increased by $52.6 million, or 7.8%, for the three months ended September 30, 2012 from the comparable period in 2011, primarily as a result of higher sales volumes ($53.8 million), partially offset by unfavorable sales price and mix of containerboard to third parties primarily due to lower export pricing ($1.2 million).

Income from operations increased $20.9 million, or 29.4%, for the three months ended September 30, 2012 compared to the three months ended September 30, 2011, driven by increased volume ($11.0 million) and lower costs for energy ($7.8 million), recycled fiber ($6.3 million) and chemicals ($3.0 million). These improvements were partially offset by higher expenses for labor ($1.1 million), fringe benefits including medical and pension costs ($3.3 million), depreciation ($1.8 million), and the unfavorable sales price and mix, primarily due to lower export pricing ($1.2 million). Income from operations was not impacted by any special items during the third quarter of 2012.

Net sales increased by $141.5 million, or 7.2%, for the nine months ended September 30, 2012 from the comparable period in 2011, primarily as a result of higher sales volumes ($150.8 million), partially offset by unfavorable sales price and mix of containerboard and corrugated products to third parties primarily due to lower export pricing ($9.3 million).

Gross profit increased $57.9 million, or 14.2%, for the nine months ended September 30, 2012 from the comparable period in 2011, primarily due to the sales volume increases and lower energy costs described above. Gross profit as a percentage of net sales increased to 22.1% of net sales for the first nine months of 2012 compared to 20.7% in the first nine months of 2011.

Net cash provided by operating activities for the nine months ended September 30, 2012 was $251.8 million compared to $236.8 million for the nine months ended September 30, 2011, an increase of $15.0 million, or 6.3%. Cash provided by operating activities before changes in operating assets and liabilities was $357.8 million for the first nine months of 2012 compared to $273.0 million for the comparable period in 2011, an increase of $84.8 million that was driven by the stronger operations in 2012 as previously discussed and an additional $34.6 million of alternative energy tax credits used to reduce federal income tax payments during the first nine months of 2012. Cash used for operating assets and liabilities totaled $106.0 million for the nine month period ended September 30, 2012 compared to $36.2 million for the comparable period in 2011, an increase of $69.8 million. The additional requirements for operating assets and liabilities in 2012 were driven by reduced accounts payable levels in 2012 and higher levels of accounts receivable driven by the higher sales volumes in 2012 previously described. Cash requirements for operating activities are subject to PCA’s operating needs and the timing of collection of receivables and payments of payables and expenses.

Read the The complete Report



Stocks Discussed: PKG,
Rate this post:




Sorry, only registered users may post in this forum.

Please Login if you have an account or Create a Free Account if you don't




Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial