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Packaging Corp forecasts profit below estimates on export, freight pressures
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Packaging Corp forecasts profit below estimates on export, freight pressures
Jul 23, 2025 3:46 PM

July 23 (Reuters) - Packaging Corp of America ( PKG )

forecast third-quarter profit below Wall Street estimates on

Wednesday, hurt by rising freight costs and weak export

containerboard sales amid global trade uncertainty.

The Lake Forest, Illinois-based company specializes in

delivering paper and packaging products catering to a range of

sectors, including the food and beverage industry, paper

manufacturing, and retail commerce.

While demand for packaging goods is recovering from a

post-pandemic slowdown, sticky inflation and cautious consumer

sentiment have pressured sales, especially while its customers

navigate trade uncertainties due to tariffs.

CEO Mark Kowlzan said pricing in both packaging and paper

will remain flat in the third quarter, while freight costs will

rise due to higher rail rates.

The company expects third-quarter profit of $2.80 per share,

compared with analysts' average estimate of $2.92 per share,

according to LSEG data.

Packaging Corp's net sales rose slightly to $2.17 billion in

the quarter ended June 30, from $2.07 billion a year earlier.

Analysts on average estimated $2.19 billion, according to data

compiled by LSEG.

Its adjusted profit for the second quarter came in at $2.48

per share, compared with estimates of $2.44.

(Reporting by Utkarsh Shetti and Anandita Mehrotra in

Bengaluru; Editing by Devika Syamnath)

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