PCA details Greif integration, upcoming mill energy projects

Packaging Corporation of America spent more time than anticipated getting two mills up to speed following its $1.8 billion acquisition of Greif’s containerboard business in September.

Overview: Packaging Corporation of America’s corrugated sales volumes were “largely on plan and continued to reflect the cautious ordering patterns we’ve seen most of the year,” said CEO Mark Kowlzan during Thursday’s third-quarter earnings call. The company ran production to demand and year over year produced 38,000 fewer tons in Q3, he said. 

Greif acquisition: PCA completed its $1.8 billion acquisition of Greif’s containerboard business on Sept. 2. “I’m feeling very bullish on what we’ve seen just in a month and a half,” Kowlzan said. PCA is working to integrate Greif’s operations, and so far “the culture is highly compatible,”

Outlook: PCA expects Q4 corrugated shipments to be higher than in Q3. The company also expects sales of containerboard to be higher, but still relatively low in comparison to traditional fourth-quarter volumes. The company will adjust output to work down inventories, Kowlzan said. PCA expects to incur acquisition and integration costs related to the Greif deal in Q4, as well as charges related to closing the corrugated products facilities.

PCA details Greif integration, upcoming mill energy projects | Packaging Dive

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