Packaging Corporation of America (PCA) reported lower-than-expected third-quarter earnings, as higher freight and energy expenses offset steady sales growth. The company’s shares dropped more than 7% in after-hours trading following the announcement.
The Lake Forest, Illinois-based paper and packaging producer continues to navigate softer demand across key markets, compounded by elevated transport and raw material costs. Economic uncertainty and ongoing trade-related pressures have also dampened customer orders in recent months.
For the quarter ended September 30, PCA posted an adjusted profit of USD 2.73 per share, missing Wall Street’s consensus estimate of USD 2.81, according to data compiled by LSEG. Net sales edged up slightly to USD 2.31 billion, compared with USD 2.30 billion expected by analysts.
Chief Executive Officer Mark Kowlzan said the company anticipates further cost headwinds in the coming months. “We expect seasonally higher energy and fiber costs and, on the whole, freight and other operating costs to be relatively flat. In the Paper segment, we expect lower production and sales volumes than the seasonally stronger third quarter with flat pricing,” he noted.
Despite the profit miss, PCA remains among the leading U.S. manufacturers of containerboard and corrugated packaging, serving a broad base of industrial and consumer goods clients.
