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)