Containerboard, Corrugated Demand Surges At PCA Packaging Corp. of America (PCA), a packaging pro- ducer based in Lake Forest, Illinois,has reported strong containerboard and corrugated demand in its latest earnings report. Overall, PCA said it achieved second-quarter 2021 net income of $207 million, or $2.17 per share. Sec- ond-quarter 2021 net sales were $1.9 billion compared with $1.5 billion in the same time frame of 2020.The company said earnings before interest, taxes, deprecia- tion and amortization (EBITDA) for the second quarter, excluding special items, totaled $397 million this year compared with $299 in the second quarter of 2020. In PCA’s Packaging segment, total corrugated prod- ucts shipments and shipments per day were up 9.6 percent in the second quarter of the year over the second quarter of 2020. PCA reports that container- board production was 1.192 million tons, and contain- erboard inventory was up 20,000 tons from both the second quarter of 2020 and the first quarter of 2021. Tom Hassfurther, Executive Vice President of Corru- gated Products at PCA, said outside sales volume of con- tainerboard was 43,000 tons above the second quarter of 2020 but down slightly compared with the first quar- ter of the year because of lower export shipments. Looking ahead to the third quarter, Mark Kowlzan, PCA Chairman and CEO, said PCA expects demand will remain strong for containerboard and corrugated products with one additional day for box shipments. Additionally, he said he expects recycled fiber costs to remain high in the third quarter of the year. “You have to believe with the current trends it’s go- ing up and there is nothing that indicates it’s going to go down anytime soon. Some of the latest data that’s come out indicates record-low nationwide inventory levels of recycled fiber availability, all-time demand for all recycled fibers across the board.And so, unless something happens to the marketplace in the world, I don’t see that changing.”
Industry Events
Labelexpo Europe September 21-24, 2021 Brussels Expo Brussels, Belgium
CorrExpo 2021 September 27 - 29, 2021 St. Louis, Missouri
FTA Fall Conference October 4-6, 2021 Frisco, TX
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TLMI Annual Meeting October 17-19, 2021 Naples Grande Beach Resort Naples, FL
Labelexpo Europe April 26-29, 2022 Brussels Centre Expo Brussels, Belgium
Inovar Packaging Group Acquires Precision Label
Inovar Packaging Group, LLC, has completed its ac- quisition of Precision Label, Inc. in Oceanside, Califor- nia, in partnership with the existing Precision Label management team.This is Inovar’s sixth platform com- pany and adds to its existing manufacturing footprint in Dallas,Texas; Boston, Massachusetts; Ft. Lauderdale, Florida;Milwaukee,Wisconsin; and Kansas City,Kansas. Founded in 1998, Precision Label serves the personal care, food and beverage and nutrition sectors.
Labelexpo Americas September 13-15, 2022 Donald E. Stephens Convention Center Rosemont, IL
Flexo Market News August 16, 2021 13
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