Packaging Corporation of America (PKG - Free Report) reported second-quarter 2017 adjusted earnings of $1.52 per share, beating the Zacks Consensus Estimate of $1.48 and also increasing 22% year over year.
Higher prices and mix, sales volumes and production volumes in the Packaging segment, lower annual maintenance outage costs and lower taxes along with a partial insurance recovery related to the DeRidder Mill incident drove the year-over-year improvement. These were partially offset by higher costs for energy, fiber, labor and chemicals, higher freight, interest, depreciation and other expenses and lower Paper segment prices and mix.
Including one-time items, earnings came in at $1.52 per share compared with $1.23 per share in the year-ago quarter.
Net sales for the quarter were $1,584 million, up 11.8% from $1,417.4 million in the year-ago quarter, and beat the Zacks Consensus Estimate of $1,544 million.
Cost of products sold increased 11% year over year to $1,219 million in the quarter. Gross profit increased 14.7% to $365 million from $320 million in the prior-year quarter. Gross margin expanded 40 basis points (bps) to 23% in the quarter. Selling, general and administrative expenses increased 13% to $130 million from $115 million in the year-ago quarter. Operating income rose 14% year over year to $234 million.
Packaging Corporation of America Price, Consensus and EPS Surprise