LOS ANGELES, Jan 24 (Reuters) - Packaging Corp of America said on Monday its fourth-quarter profit fell slightly due to higher costs, but sales increased 18 percent as demand for cardboard boxes recovered from the recession.
For the quarter, the company posted net income of $55 million, or 54 cents per share, 7 percent below the $59 million, or 57 cents per share, the company earned in the year-ago period.
Excluding income from tax credits and charges for asset sales, Packaging Corp earned 52 cents a share. On that basis, analysts had expected earnings of 53 cents per share, according to Thomson Reuters I/B/E/S.
The company said costs for recycled fiber, labor, transportation and chemicals were higher than last year, and it also had a higher tax rate.
Sales rose 18 percent to $627 million. Analysts had expected $633.4 million.
The results at the Lake Forest, Illinois-based company come the day after packaging and paper company RockTenn Co agreed to buy bigger rival Smurfit-Stone Container Corp for $3.5 billion in cash and stock.
Packaging Corp shares closed at $28.89 on the New York Stock Exchange, up 50 cents, or 1.76 percent.
(Reporting by Ernest Scheyder and Nichola Groom; editing by Carol Bishopric) Keywords: PACKAGINGCORP/ (ernest.scheyder@thomsonreuters.com; +1 646-223-6119; Reuters Messaging:ernest.scheyder.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2011. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
For the quarter, the company posted net income of $55 million, or 54 cents per share, 7 percent below the $59 million, or 57 cents per share, the company earned in the year-ago period.
Excluding income from tax credits and charges for asset sales, Packaging Corp earned 52 cents a share. On that basis, analysts had expected earnings of 53 cents per share, according to Thomson Reuters I/B/E/S.
The company said costs for recycled fiber, labor, transportation and chemicals were higher than last year, and it also had a higher tax rate.
Sales rose 18 percent to $627 million. Analysts had expected $633.4 million.
The results at the Lake Forest, Illinois-based company come the day after packaging and paper company RockTenn Co agreed to buy bigger rival Smurfit-Stone Container Corp for $3.5 billion in cash and stock.
Packaging Corp shares closed at $28.89 on the New York Stock Exchange, up 50 cents, or 1.76 percent.
(Reporting by Ernest Scheyder and Nichola Groom; editing by Carol Bishopric) Keywords: PACKAGINGCORP/ (ernest.scheyder@thomsonreuters.com; +1 646-223-6119; Reuters Messaging:ernest.scheyder.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2011. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.