Release Date: April 23, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: Can you discuss the early trends in terms of bookings and billings so far in Q2?
A: (Thomas A. Hassfurther - EVP of Corrugated Products) Bookings remain very strong, up 8% as of now, and we expect a strong second quarter and the remainder of the year.
Q: Can you provide details on your vertical integration in Q1 and also in Q4?
A: (Robert P. Mundy - EVP & CFO) The integration in the first quarter was around 90%, almost 93%, and slightly below that in the fourth quarter.
Q: How has the mix of your business been between third-party and export in Q1 compared to Q4?
A: (Thomas A. Hassfurther - EVP of Corrugated Products) Export in Q1 versus Q4 was down slightly. Fourth quarter is a big export time for us, but on an overall basis, it was pretty flat.
Q: Are there any particular sectors or end markets where you saw more notable improvement or anything lagging?
A: (Thomas A. Hassfurther - EVP of Corrugated Products) Demand improved across the board in various segments like e-commerce, agriculture, food, and even heavier manufacturing areas.
Q: With the Jackson project conversion complete, what is your full production potential on an annualized basis assuming demand is there?
A: (Mark W. Kowlzan - CEO) Including the 7-mill system, we'd be a little over 5 million tons, around 5.2 million depending on the grade mix.
Q: How is the box price increase progressing, and do you expect it to proceed like normal?
A: (Thomas A. Hassfurther - EVP of Corrugated Products) The box price increase will flow through as normal over a 90-day period, with a little bit of lag into midyear due to some contracts having midyear triggers.
Q: Given the recent mergers of your competitors with European counterparts, how do you see this changing the competitive landscape?
A: (Mark W. Kowlzan - CEO) We don't see it as a significant change in the domestic marketplace. We continue to focus on growing our business significantly in the United States.
Q: Can you comment on the benefits to the P&L from your ongoing productivity programs?
A: (Mark W. Kowlzan - CEO) The return and benefit to the P&L from our productivity programs should continue at the rate we've been seeing in the last few years. These efforts will never end and are a differentiating factor for PCA.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
