PCA Puts Greif-Related Synergies at $40 Million to $50 Million

Packaging Corporation of America (PCA) CFO Kent Pflederer said Greif-related synergies are running at $40 million to $50 million, while the company forecasts fourth-quarter earnings of $2.81 per share excluding special items.

Speaking on an Oct. 22 earnings call, Pflederer also cited other integration benefits and reliability and cost performance at the acquired mills.

PCA's fourth-quarter outlook includes higher expected freight, recycled-fiber and wood-fiber costs, among other factors. Adjusted third-quarter earnings were $3.04 per share, up from $2.73 a year earlier. Greif operations contributed 24 cents of the 31-cent increase.

PCA's third-quarter results also included a 10.6% year-over-year increase in corrugated-product shipments.