(RTTNews) - Monday, containerboard and corrugated products manufacturer Packaging Corp. of America (PKG: News ) reported an increase in third quarter earnings from a year ago, benefiting primarily from alternative fuel mixture tax credits. Adjusted earnings, however, was lower than last year, reflecting a decline in product price and volumes. Going forward, the company provided its fourth quarter earnings, expected to come in below Street estimate.

The Lake Forest, Illinois-based company's third quarter net income rose to $72.7 million or $0.71 per share from $38.1 million or $0.37 per share a year ago. Earnings for the recent quarter included income of $48 million or $0.46 per share from alternative fuel mixture tax credits.

Excluding income from alternative fuel mixture tax credits, net income for the quarter was $25 million or $0.25 per share, down from $38 million or $0.37 per share in the prior year quarter. On average, analysts polled by Thomson Reuters expected the company to earn $0.25 per share for the quarter. Analysts' estimates typically exclude special items.

The company attributed the $0.12 per share decrease in earnings, to the downturn in the economy which lowered containerboard and corrugated products price and mix and volume.

Net sales for the quarter dipped to $554 million from $621 million in the year ago period. Revenues came in above Street estimate of $548.82 million.

Packaging Corp's corrugated products shipments were down 4.8% and outside sales of containerboard slipped about 6% compared to last year's third quarter.
For the nine-month period, the company posted net income of $207.2 million or $2.03 per share, up from $105.4 million or $1.01 per share in the corresponding period. Excluding alternative fuel mixture tax credits, earnings declined to $80 million or $0.78 per share from $105 million or $1.01 per share in the prior year. Year-to-date net sales decreased to $1.615 billion from $1.814 billion a year ago.

Looking ahead to the fourth quarter, Paul Stecko, chairman and chief executive officer, said, "We expect lower volume due to three less shipping days along with normal seasonality. Prices are expected to be lower as a result of previously published containerboard price changes, and wood costs and energy usage are expected to be higher with colder and wetter weather."

Excluding any income from alternative fuel mixture tax credits, the company currently estimates fourth quarter earnings at about $0.13 per share. Analysts are looking for earnings of $0.17 per share.

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