Packaging Corp. 3Q income doubles on tax credit

Packaging Corp. of America says 3rd-quarter earnings nearly double on tax credit benefit

• On 6:14 pm EDT, Monday October 19, 2009

LAKE FOREST, Ill. (AP) -- Cardboard box maker Packaging Corp. of America said Monday its third-quarter income nearly doubled to $72.7 million, as an alternative-fuel tax credit offset falling sales.

The company said it earned 71 cents per share during the period ended Sept. 30. That's up from $38.1 million, or 37 cents per share, during the same quarter last year.

The results included a gain from alternative-fuel tax credits from July 1 through Sept. 30. Excluding the gain, the company earned $25 million, or 25 cents per share.

Sales fell 10.8 percent to $553.5 million.

The company met Wall Street's earnings estimates but fell short on revenue. Analysts surveyed by Thomson Reuters expected 25 cents per share on $548.8 million in revenue, on average. Such estimates typically exclude one-time items.

Shares fell in after-hours trading, losing $1.41, or 6.5 percent, to $20.25. During the regular session, the stock fell 42 cents to close at $21.66.

The company said shipments of corrugated products fell 4.8 percent. Outside sales of containerboard fell 6 percent from the year-ago quarter.