Packaging Corporation of America Reports Fourth Quarter and Full Year 2020 Results
Packaging Corporation of America (NYSE: PKG) today reported fourth quarter 2020 net income of
Diluted earnings per share attributable to Packaging Corporation of America shareholders |
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Three Months Ended |
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Full Year Ended |
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December 31 |
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December 31 |
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2020 |
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2019 |
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Change |
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2020 |
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2019 |
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Change |
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Reported Diluted EPS |
$ |
1.30 |
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$ |
1.43 |
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$ |
(0.13) |
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$ |
4.84 |
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$ |
7.34 |
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$ |
(2.50) |
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Special Items Expense (1) |
0.03 |
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0.28 |
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(0.25) |
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0.94 |
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0.31 |
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0.63 |
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Diluted EPS excluding Special Items |
$ |
1.33 |
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$ |
1.71 |
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$ |
(0.38) |
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$ |
5.78 |
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$ |
7.65 |
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$ |
(1.87) |
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(1) For descriptions and amounts of our special items, see the schedules with this release. |
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Reported earnings in the fourth quarter include special items for facilities closure and restructuring costs. Full year 2020 earnings include special items primarily for costs associated with facility closures, expenses associated with the impact of Hurricane Laura at our DeRidder, Louisiana mill, and goodwill impairment charges in our Paper segment resulting from the exacerbated deterioration in uncoated freesheet market conditions arising from the COVID-19 pandemic.
Excluding special items, the ($.38) per share decrease in fourth quarter 2020 earnings compared to the fourth quarter of 2019 was driven primarily by lower prices and mix in our Packaging segment ($.30) and Paper segment ($.05), lower volumes in our Paper segment ($.27), higher scheduled maintenance outage costs ($.08), higher freight expense ($.07) and a higher tax rate ($.05). These items were partially offset by higher volumes in our Packaging segment $.40, lower operating costs $.01, and other costs $.03.
Financial information by segment is summarized below and in the schedules with this release.
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(dollars in millions) |
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Three Months Ended |
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Full Year Ended |
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December 31 |
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December 31 |
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2020 |
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2019 |
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2020 |
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2019 |
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Segment income (loss) |
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Packaging |
$ |
209.6 |
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$ |
214.9 |
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$ |
829.5 |
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$ |
963.4 |
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Paper |
1.7 |
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42.9 |
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(20.0 |
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175.4 |
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Corporate and Other |
(22.0 |
) |
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(22.7) |
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(85.6 |
) |
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(85.1) |
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$ |
189.3 |
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$ |
235.1 |
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$ |
723.9 |
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$ |
1,053.7 |
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Segment income (loss) excluding special items |
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Packaging |
$ |
212.8 |
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$ |
215.6 |
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$ |
873.1 |
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$ |
967.5 |
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Paper |
2.5 |
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42.9 |
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36.6 |
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175.6 |
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Corporate and Other |
(22.0 |
) |
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(22.7) |
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(85.6 |
) |
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(85.1) |
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$ |
193.3 |
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$ |
235.8 |
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$ |
824.1 |
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$ |
1,058.0 |
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EBITDA excluding special items |
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Packaging |
$ |
303.0 |
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$ |
303.0 |
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$ |
1,229.2 |
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$ |
1,310.0 |
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Paper |
9.5 |
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52.5 |
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73.1 |
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213.3 |
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Corporate and Other |
(19.8 |
) |
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(20.8) |
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(77.3 |
) |
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(78.1) |
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$ |
292.7 |
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$
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