Packaging Corp. of America (PKG) Monday said its second quarter profit surged from a year ago, boosted by income from alternative fuel mixture credits, even as quarterly sales declined. Results for the quarter came in above Street estimates. The container-board and corrugated products maker also expects third quarter earnings to come in ahead of current Street estimates. Shares of the company moved up more than 12% in after-hours, on the NYSE.
For the second quarter, net income more than tripled to $108.9 million or $1.07 per share from $35.2 million or $0.34 per share in the same quarter a year ago.
Quarterly results included income of $80 million or $0.79 per share from alternative fuel mixture tax credits for the period from December 13, 2008 through June 30, 2009.
Excluding income from alternative fuel mixture tax credits, net income was $29 million or $0.28 per share.
On average, eight analysts polled by Thomson Reuters expected earnings of $0.16 per share for the quarter. Analysts' estimate typically excludes one-time items.
The company attributed the $0.06 per share decline in earnings to slumping economy, which lowered the volume of container-board and corrugated products, while increasing downtime . results were also hurt by higher costs for labor and benefits and lower prices.
These items, however, were partially offset by lower costs for recycled fiber, transportation and energy.
Net sales for the quarter, however, declined to $549.4 million from $616.2 million in the prior-year quarter, however, above Street estimates of $535.21 million.
In the sequentially preceding first quarter, profit of the company plunged to $25.7 million or $0.25 per share as revenues declined, hurt by lower volumes of containerboard and corrugated products, amid the economic downturn. Net sales for the quarter were down at 512 million.
For the first six-month period, net income surged to $134.6 million or $1.32 per share from $67.3 million or $0.65 per share in the year-ago period. Excluding items, earnings were $54 million or $0.53 per share.
Sales during the period were $1.06 billion, down from $1.19 billion in the year-earlier period.
Paul Stecko, Chief Executive Officer said, "Business conditions improved significantly during the quarter with higher than expected sales volumes, less market-related mill downtime, and lower operating costs."
The company noted that the volume of its corrugated products shipments rose 10%, or 40,000 tons, while outside sales of containerboard were up 20%, or 16,000 tons.
Looking ahead to the third quarter, Packaging Corp. of America said it expects earnings of about $0.24 per share, while the Street currently expects earnings of $0.12 per share.
Despite expecting some market-related mill downtime, the company said it expects sales volumes to be higher in the third quarter, and anticipates a significant decline in the prices of its containerboard and recycled fiber products.
PKG closed Monday's regular trading at $18.07, up $0.27 or 1.52%, on a volume of 1.67 million shares. In after-hours, the stock further gained $2.18 or 12.06%, to trade at $20.25.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.