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Packaging Corp. 3Q net income beats expectations

LAKE FOREST, Ill. (AP) -- Packaging Corp. of America on Monday reported third-quarter net income and revenue that beat Wall Street expectations thanks to higher demand for its containerboard and corrugated packaging products.

The company reported net income of $84.2 million, or 86 cents per share, in the three months ending Sept. 30. That compares to $39.8 million, or 41 cents per share, during the same period a year ago.

Excluding costs of an acquisition and other one-time charges, the company reported earnings of 91 cents per share.

Analysts, on average, expected adjusted earnings of 89 cents per share, according to FactSet.

Revenue rose 17 percent to $845.4 million in the third quarter from $723.5 million in the same quarter a year ago.

Analysts expected revenue of $829.7 million, according to FactSet.

Shipments for corrugated products rose 7.8 percent compared to last year's third quarter. Containerboard production was at a record 671,000 tons, the company said.

For the fourth quarter, the company said it expects earnings around 84 cents per share. That's in line with what analysts are expecting.

Packaging Corp. of America has four paper mills and 71 corrugated products plants in 26 states.

Its shares rose 84 cents, or 1.4 percent, to $59.36 in after-hours trading following the release of the earnings report. They rose 92 cents to close at $58.52 during normal trading hours Monday.