PKG - Earnings call transcript Q2 2019 | Packaging Corporation of America

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Operator

Thank you for joining Packaging Corporation of America's Second Quarter 2019 Earnings Results Conference Call.

Your host today will be Mark Kowlzan, Chief Executive Officer of PCA. [Operator Instructions]

I would now like to turn the conference over to Mr. Kowlzan, and please proceed when you're ready, sir.

Mark Kowlzan

you XXXX in earnings thank America's Corporation and quarter second release morning, for Packaging participating of Good conference call. Kowlzan, the Tom Financial Officer. Mark with business; and who am Chairman our of Packaging CEO I Chief Mundy, PCA, runs me the on Executive call Hassfurther, is Bob today Vice President, and and I'll call overview an with begin results. of the our second quarter who I'm will call and over then to the going turn more provide Bob to details. And Tom glad things up questions. and And to then be take we'd I'll wrap then

Yesterday, a we net share, quarter $XXX income of per share. per $XXX $X.XX items. reported second XXXX of million This second income $X.XX special or compares net or to million excluding quarter

second sales primarily excluding in per volume the operating in second in $X.X billion million lower and higher XXXX XXXX, net in segment XXXX. $X.XX, XXXX of both and quarter our $X.XX, rate costs annual quarter to $XXX Total was paper in excluding decrease special were earnings tax $X.XX was for of $X.XX. of of The by quarter compared special items. million converting of a $XXX and $X.XX, expenses Second quarter the second XXXX, share XXXX of $X.XX, company higher higher costs outage driven higher EBITDA items,

and and $X.XX. freight and building prices and paper of insurance. indirect such of segment, and equipment offset conversion as three costs, of in property operating volume mix due to and operating segment lower benefits our as lower well outside in $X.XX, items cost expenses, paper were services, number higher These higher converting These primarily partially taxes $X.XX and repair costs costs machine as higher increases mix of with were by Wallula expenses related labor our rental costs materials, $X.XX and of $X.XX and and packaging prices

of XX.X% or $X.X EBITDA items million million $X.X excluding EBITDA resulted versus $XXX margin. margin special packaging with sales XX.X% in quarter last second of the billion billion of at in a sales of business, year's a Looking the $XXX XXXX of and

containerboard plants continue We the to box our integration supplying box demand, to by quarter first establish shipments the our maintained day. for new containerboard lowered rate to necessary second industry our mills levels with run leading as from quarter our a inventory and record per we

meet supply employees Our third and the balancing optimizing job quarter quarter at outstanding minimize cost stronger containerboard demand. system. the ended to inventories and while with the footprint our did seasonally running logistics costs effectively, with an our of freight across to We level appropriate demand

Tom who I'll in now the it turn business and containerboard on over details to general. will more corrugated provide sales

Tom Hassfurther

Mark. you, Thank

compared mix XXXX XXXX. prices were needs quarter XXXX quarter per increased to due down two per the corrugated up as container were box and As to $X.XX $X.XX prices had container business to purchase XX,XXX sales customers of of incurred about quarter container Domestic quarter compared the first ran Outside products and second quarter X.X% the system of XXXX. to shipments at of the second supplied our Export compared and and record plants. $X.XX of Sacramento the the tons down products volumes first of of corrugated quarter, together second Mark significant large board demand to year’s and board last in box second share a share down plants year’ sheet per indicated, spite share above compared containerboard below containerboard integrated. we by our another we was second share $X.XX loss per our per day, last were to quarter which

Mark. to it turn now I'll back

Mark Kowlzan

Tom. Thanks,

$XX compared to million, in of excluding at a EBITDA Looking of $XXX million or $XX XX.X% XXX a and XX.X% quarter paper EBITDA margin. second with million, items sales million the special our sales margin of segment, XXXX was or quarter second

volumes size a at cup Overall and bit prices We system of the second increased successfully last completed in the our annual exit of profitable year. lower well are papers quarter, June. is mill above moved XXXX. soften Wallula most and mill at year’s focus higher white an compared products. conditions on our quarter our converting mill were extremely a but The International slightly currently printing outage to industry result and running revenues quarter Falls seem last to Our the business during the with second from the

part to it. Wallula, capital improve continue this to at by continuing and allocate than We profitability business our people the in rather exiting segment, and to paper in margins resources

turn now Bob. it over to I'll

Bob Mundy

Thanks, Mark.

second million. of million the income was of million We a with $XXX primary dividends record quarter of state quarter cash contributions and XX was ended common and included the million totaled provided expenditures flow cash cash payments The million. $XX For during $XX free XX quarter, stock $XXX million; capital payments, hand. XXX the by cash for tax and uses pension operations federal million net $X of of on million, interest

it turn I’ll back to Mark. now over

Mark Kowlzan

Bob. Thanks,

as to as price published containerboard volume should scheduled be and to should quarter, second result prices. export corrugated in the of shipments the containerboard and prices quarter per these lower. outage maintenance expect earnings higher. expect third of move items, operating be other slightly seasonally segment, be packaging paper mix costs Considering lower. move we stronger, a and domestic costs into into and ahead, but $X.XX our decreases Converting But we third we costs share. segment, the product we higher expect and lower forward Looking -- the the with lower In seasonally from prices

the differ today statements. remind current those statements on based in The forward-looking uncertainties, and we've that of as from the to must Form any on the of with constitute made SEC. the With The these our I happy be risks results some economy questions. on the that, those statements call you of forward-looking estimates, But projections file identified were could in company statements. and risk inherent entertain the and expectations we’d direction report expressed and involve including factors actual annual XX-K materially on

to ahead go I'd open questions operator, that call the and up to with like please. And

Operator

[Operator Instructions] the from with Brian Sachs. Goldman Maguire first is Your line question of

Brian Maguire

Just question have fourth as third from obviously, you quarter, deterioration the a index much for price of just some through you’d on saw that how prices be to in noted, $X.XX into already and how wondering quarter. guide of the much declines we in publication the will the outlook a, flow recognized still that

Mark Kowlzan

mentioned changes volume containerboard the fairly we published in the past, As impact the price domestic quickly.

factors in in how the But trade our side all the of roll price So through price past we've and domestic prices the the also degrees triggers flow over various varying or mind, XX-day increases that business. And period. also changes decreases. through to the our talked about XX,XXX a keep And and majority of these across impacted during decreases businesses customers mechanisms to timing second price published box typically so the whereby will quarter. the applies have and of vast

to have the and the in you'd once move assume can cadence, published happen down see June, index expect same that March, that now. price you and and So, we’ll May

quarter. price of the in seeing decreases third this remainder through finish flow the we'll So,

Tom, Bob, you to you want to add want or that to add?

Tom Hassfurther

No.

Brian Maguire

quarter. I how box did contribution shipments noted that X.X%, earnings that Just the could I packaging that down drive just hoping you in with year-over-year. the just volumes were around to was the think it volumes, you reconcile on But added that EPS $X.XX the fact

Mark Kowlzan

Yeah, you June. the forget let more then that up little we me a clarity. as Bob exited and last business comment in can year, give we Don't Wallula paper brought

a there and we And segments. had was between Wallula coming change on so taking place

Bob, it? you want elaborate to on

Bob Mundy

we we up course reduced with XX,XXX purchases And Yeah. volume, by year-over-year, at conversion, the finished look and on our work outside almost last at tons. the packaging year, when volume, early DeRidder the Brian, you Wallula actually of

internalized -- we've and those So so now, tons.

that high get is of provides [ph] the benefit versus you rate, benefit purchases. outside So tons, OMEG of of OMEG our one integration the, us which

you and saw though definitely that so has much. that, an effect, volumes so may have even income total positive moved not in And

Brian Maguire

number? volume input more that Okay, than in number reflected is the the so cost

Bob Mundy

Right.

Operator

Gabe Your next the of question Fargo is Securities. line Hajde Wells with from

Gabe Hajde

insight any sort strength. us end where bit us you're little was of give or that into softness on seeing a do then can you particular trends Tommy, for you markets if I July. of normally and touch curious into

Mark Kowlzan

through bookings about up are Gabe, X.X%. days, yeah, and XX our billings Okay.

and we're quarter very out the starting well. the month So

of is the coming One half and the driver those the business now. crops ag this second strong on key areas but right now, in they're for the into going came late out weather year West It's, and Northwest. the -- due to in us Pacific

So, we're quarter. outlook encouraged very going the into with the

Gabe Hajde

otherwise? it's at about, through the And allocation or I Bob, you're cash comment to in market opportunities if Mark increased and shareholders, returning some guess, you dividends all, maybe regarding whether thinking how capital then priorities or can

Mark Kowlzan

well on And spending, going proceeding we’ve capital later coming for low-XXX terms in to that this that’s general on regarding Yeah, project year we're in still this the year. got target of, be area. be big Richland that's

as far applied. cash, the same, of As always it's uses

dividends, You've it got as to share look as gets. opportunities, we’ll and about opportunistic the best type shareholders. value acquisition for spending, at be capital continue and straightforward buyback, That's

Operator

Your of Dillon line next Vertical question Chip is from the with Research.

Chip Dillon

of I know, you place. saved virgin buying you that First interested lighter the others, boards in curious, your at box weighting in And some guess, capacity would recycle I question is started know with your But some Western have Wallula. recently some -- we was is, taking marketplace, changes I there in just up be just plans? from

Mark Kowlzan

to my But Chip, board buy the specialty And, we always outside from no. that's market. is generally that answer will some grades.

in got mind Now, when integration, it -- XXX%. nowhere our we were basically keep

buyers joint long be as any market as kind supply in in open or with partnership venture board, we and meeting but own, We’re general, of we for anybody. interested containerboard liner can general, wouldn't our

elaborate on want that? you Tom, to

Tom Hassfurther

a the towards about difficult we see end consider bit, based just end much market getting I’ll performance We a really more the recycle moving little more Yeah, market having there. little products, time talk Chip. which

to other risk meeting got we've standards going perhaps recycle reputation ourselves value over to it's and term a and certainly where all we're doing quality for going reputation aligning be to not extent, those and product adding things, sorts that long in we're board. though somebody of with commodity with even position a some a So,

Chip Dillon

in could quarter if you And quick don’t Mark Bob, that’s the but just the you given can the changed I hold know past, per third just that could you the I CapEx least number will and maintenance expense days, us at guidance be this of of this in and I remind it's directional then fourth. inkling you in we'd some us it. where a year? as it mentioned, know that follow to And have early be if not up, year, that point, in it If the second then either. know you've what for next any you give terms at [indiscernible]

Mark Kowlzan

give then always update we spending, basically one capital we’ll you And give regarding New XXXX, Year quarter the coming January. Chip, up, updates. for an in

identified then, efficiency we've on, think take that. some technology a us. and number. high as way. after risk for opportunities go cost me good amount that only got some box wait spend projects you give we're but opportunity, will to we next let take plants mill return out January little answer capacity the capital And until going new in we'll of will of it's opportunities that capital we small cost for bit the business, this in side, but do adds we aggressively year's It some I very grow the next got also always the not We've We've as some free of, to some of that continue very year.

Bob Mundy

outage the in was second, $X.XX. Chip, it impact on the

expect the to be in around in $X.XX the $X.XX, We somewhere, $X.XX and fourth. it third

Operator

from Mark line is of question the Connelly with next Your Stephens.

Mark Connelly

up that follow plants. box the about if Mark, just on could question I

to plants I directional productivity. primarily as in saying the of equipment the changing well meet performance trend on But the reinvestment take is sort think of you're some you're trying that market? of sort that focused to there expectations box is your still a

Mark Kowlzan

to think, twofer. at I look Well, got this you way, a it's

capacity your have from any the unit. plants, here. we going of a process are view, in But You to a theoretically more get unit your bangs buck conversion capital making With the spending, terms you're new two box opportunity. going on of also technology efficient labor input point in overall you improve for for

this box of So advantage also it in capacity to manpower in at very are last as take years, to some earlier And these as us we're reached, that's projects in available. the also done have as effective in technology cases, the we execute a few in manner. that, many limitations the looking The plants, mill. we've big said behooves we've the year,

and ahead we organization, have engineering to and plant engineer projects personnel. capability technology broad in-house new a the with very through construct So go box these PCA

little you a more? Tom, have want to

Tom Hassfurther

as driven to is it think what the to profitable the are. and box build way in we it operating best our customers’ growth times, really I our mean, that, efficiencies, by reinvestment put and I don't And come. and plants Mark, demands which by is, their is Yeah. driven needs. they really That's react hope many will primarily, our said we needs customers’ I are

Mark Connelly

question. more one Just

with AMPA the and you're a just performance us Are outperforming And disconnect between just is the what see and going you do? telling you a obviously is mile, than numbers in market? because showing the these whether on the huge by are happening drops, out to I'm we what you that curious industry white paper numbers do Your what's you overall. little a surprised, [ph] see is as go market, the AMPA better

Mark Kowlzan

is such relies our customer our base distribution our Well, capability. regarding on that and volume, marketplace logistics

really a customer their relies generally type of a And our great a mix to that capability of for take have we them. going so BXB care from needs, on distribution

so, back was to five the that worked built Boise one logistics was strengths I've And this over last at four of goes for really made supplies probably comments years customers. capability we decades And their hard. that over

we in balance. business, And forget so, North system, I'll well Jackson we we're what And general seeing. we've tidy too, aren't supplying nice term, got marketplace just American got that Falls seeing I use and pretty a is the the in don't

about our in So, particular. we're feeling good pretty business

Operator

with from of the Bank George question America of Lynch. Merrill Staphos line is next Your

George Staphos

you're less more things wanted to year that of there inflation time, on over little these been to normal. and or off and bit been a what about Can you've dig you performance labor in matter, take a edge I have the Was in more costs? the trends XXXX seeing talked in we'll quarter, affecting the working quarterly us, see you'd remind Bob. a in than as projects it any bit operating have for the little and cost expected these benefits, quarter that that trend things some XXXX? Mark been first could you was And like the of on of that in and

Mark Kowlzan

than think, some was we third, think, probably, George, certainly Yeah, into This costs coming this going X the were thought. should as all to seeing the that, Last we We're lot And we look to would from operating be quarter. year. this a costs I that. the actually, that. of little expected what that we in as I in far third say inflation X, a as that was better seeing of going the still a through. year, positive -- actually year, we're all I Actually, quarter don't are slight

George Staphos

to benefit you would more future or have more into the Okay. the box grow just Mark, to ability you related over margin Would they How you projects, probably do the said that? in say are benefit think those twofer. you the so the is But I time get you of about from in plants, of know, investments? terms terms a in us get -- disproportionate

Mark Kowlzan

unique, Again, again, each plant that quite depends how each project you're just unique. going just it is is depends, operation. on to frankly, particular run And

-- there's fits it's that all. again, no formula So one

George Staphos

I'll given helpful? having, across you during expect I had it, but would where which know one quarter? years, that came you And last integration the you provide then Mark, mentioned the that had it that over. you or for industry level integration, over you intuitively the all question. turn If year had be in obviously would we quarters, the say you an had leading you that could

Mark Kowlzan

sitting integration in area. our low-XXs is the percent Yeah,

George Staphos

down. recent then last, earlier seeing back we've mid-single enter so trends. in all the If improvement, over of the on And couple one to customers and near had rebuilding we still then of the weak there's call extract end somewhat of markets, similar about we quarter or term month, stock. a to the question pull lastly, are concerned as we've look, been July markets seeing digits that July are the agriculture, inventories new some as quarter, of your And of end of the you across a they I'd relatedly things low kind macro it years, say

So data? Thanks in you that that one, over share the luck de-stocking kind and in couple end can you And the of think if good last what years? would other do hand you mouth agree had to quarter that market, guys. restocking two, we've and of ordering

Bob Mundy

George, Yes, the a at the We and the past. you're get strong, of little quite trend the the that out quarter. has in quite end we observant, start in been quarter, my weaker opinion.

that think global half questions And we think than of of past marketplace. a the by seen. the de-stocking saw we've the regarding I this first driven lot typically probably more that's year I

markets as the Of slows globe export impacted, some. down the course, the have definitely been rest of

I ag, I the strengthening our relatively optimistic So, think And is going more it stable. been outside think half. of I feel business it. about second I into has mean,

prediction, However, hearing they I'm customers but about second tell the you that's that better one year well. from that as I our half of feel can the

the demand prospects to meet forward. going the their So, now they've demand confident domestic adjusted and think of feel I and the growth business global somewhat about kind right

Operator

from Your the Wilde is line Mark next question with of Capital BMO Markets.

Mark Wilde

on the could flow and taking some in the release, you color that. bit or production out, that do wondered, If machines a color a us give kind Mark, I back. better just it's you’re reducing of smaller just on are downtime system the if managing or the you're how out wondered running little I you call if you to just demand of across

Mark Kowlzan

its April pretty Wallula this if is We've evident, the been obviously to call. look you capacity. at from math, It's was not back running really, design some the earnings commentary

capacity So the got extra we've there.

slowed Wallula back. running we're essentially, So

accommodating that's Coast so machines through run have and And Pacific that, first the have from tons at of to the filled. year, time of the some then to and and orders needed Tom But pace. we've quarter as time, And flex able through our West to needs. customer been slower the outside Northwest half a be

So that's been demand. we've how to running addressing the

Mark Wilde

have And build in how would impact start will that. the inventory an think as of then Richland, startup at when of that to front just we some much just about and

Mark Kowlzan

positive up it on planning a very of having for impact mill. and Wallula will Richland We're the the the be at end year

Our plans will board Wallula. liner medium all from and of are that the consume Richland to supply

drive XX about mile the up that's So interstate.

so be the mill runs should XXXX how its We're capability. of its year positive And up ramping a very optimistic. for in Wallula business production terms very

Mark Wilde

Last one for you're in about share $X me, a sitting on cash.

Mundy cash getting all sore some I take and versus ways, that those Bob hauling you use kind of in to help that other but is about cash think just cash So balance. managing imagine from doing how of us cash, that to are putting

Bob Mundy

to debt net our at EBITDA look at sitting ratio, we're around you X.X If historically. probably

were If X. you to we XXXX, back below went

opportunity, uncertain it of have we we feel a that but we stock So, think, really, terms whether at present so feeling world our big the got some an in plants activity. itself, we're again, the risk, the good, we at I look impact box say, off conversion the a immediate any for really acquisition any and may risk our all us We've type could opportunity, return cash, as We've be and shall the in we the been place of taken about world again, table pretty we're projects. good projects taking around world. buyback, feeling somewhat living the around with building are But year last of really over us. are, of good uncertainty, warchest, in good high low some

we we're feeling so, pretty good where cash. about are with And

utilize look think cash shareholders. the of the one in we're going not bank of waste. of and that have compelled very we utilization that's of the to at go And, future the dollar returns in our virtues it's sitting out feel don't well for I we again, now, how has right virtue been And to terms And that cash we that. Each patience. exercising quickly certainly to

with bear just to us. got you So

Operator

next of is the Anthony from Citi. Your line Pettinari question with

Anthony Pettinari

I think June. comments, said paper white conditions to industry seem your in in a you bit Mark, soften

say coming Just was July wondering side? is too demand if if to soon with side you the in on just then maybe that imports that. could the the it side, how or paper has maybe tell, comment on it's but elaborate a on trended And white possible some or supply to

Mark Kowlzan

Yeah.

seeing we June demand part and earlier softening back school we, of in And that the the to to of not First start question now was activity. the period. part up your in see what school we June we did typical but July, see back typically buying

pretty they're was that pretty saw taken it strong fundamental. things have So We and now. off was that but right evident,

good with term, again, I'd well have are. we're are feeling with July pretty use we're really So in where we the where flat we to and year-over-year

then big came And that's are industry year. of some of the don't commented that’s forget about imports. earlier up. that industry out hole But the in a Imports the to the you when -- fill fill capacity couldn't part

a so And that everyone that expected. given was

Anthony Pettinari

shipments shipments? at looking started possible to when had had but loss. side, your going corrugated trended you the wondering do, that loss us business on usually into impact was purposes, loss, I then modeling shipment that quarter? Putting lower than is growth And then Sacramento aside the your to it how of remind the kind quarter, expectations for you just And the versus you

Tom Hassfurther

Actually, last Tom. higher, is This sized It's performance number. loss. obviously good without quarter’s have significantly been that would pretty our a

into quarter. trend a the should that course, days And that loss Sacramento, in. the that give are And includes first about feel we XX so so you that going little of really we through we good have the reported at least where idea momentum, the of in going I

was half question? your of What second the

Anthony Pettinari

of your impact to started shipments? terms it when In

Tom Hassfurther

Yeah. year impact really started our quarter shipments. the it fourth to of in last That when was is

year. comparative get the So of we've we end until forward the a tough going got to

Operator

Your next Seaport question Weintraub is from line the Global. of with Mark

Mark Weintraub

clarify. to just that, on up following just So

is year? So on of box next comparison fourth the does or quarter quarter shipments first easier the it get

Tom Hassfurther

will the slightly quarter but first in year. in quarter, fourth move the easier following of the gets real It be the

Mark Weintraub

to like give to or to sort impact give it And Okay. from as X% possible of indication type a rough Sacramento? sense, is any magnitude a X% us is it the could you

Tom Hassfurther

It's the something range, X.X% like somewhere in that.

Mark Weintraub

Okay, a to magnitude might the get would to caught Richland it at how sense be? then And be much of great. as up possible order

Tom Hassfurther

this talk don't ways is putting think customer appropriate time, different us that's Not by really element that. in of Certainly, that about to I the number plants a of keep factors. of in marketplace a That's one been but driven at Richland, quite supplying the away. demand number a also That's key of different key. mind that we've from

So to we're both able transportation from and mill. box the advantage take going be those to the of savings, plant from

project So, to outstanding Richland that's to good an going out in shape. very is going start be

Mark Weintraub

And other just one. one

One costs cost playing on of your been about to I realize this a going versus us third what's talking as wood be color could morning wood out second lower them very the more tends with give the your local see of was this for how and competitors quarter year? to here, quarter. market you you balance

Tom Hassfurther

again, localized it’s Wood regional it's Mark, behaving cost the itself country flat. been weather year. pretty We're has impacted. and this throughout

So with we're good wood cost. in pretty overall place a

Operator

Josephson is line the of from with KeyBanc. question next Adam Your

Adam Josephson

just you moment help Bob, on for can guidance me. one a if

sequential in change terms give In can of sense guidance, terms what paper of of in mix, you just the implied that? there if the in me price is XQ any

Bob Mundy

because sort started into bit we it's than a the carry through it in was on release, the third. average will of quarter soften to lower said, we second in it said June, as as in and the that Well,

didn't quantify possibly. much So on but how XX obviously down, average, bucks it's it's we down, XX,

Adam Josephson

and commentary the Tom, moment, demand But customers are becoming because then for tightly. your managing half about, and a domestic more economy about obviously, global expecting that's more having talked so. slowed talked you just doing And a your second customers also improvement, cautious, inventories just on your you

global you those to in improvement, slowdown talking is were two the together. What a about? that was second economy expect to the I So just driving just trying customers your tie given half

Tom Hassfurther

half feel the to What the footprint. And inventory I'm where done. economy that, fact good there year. about really States, we've was the got referring large basically throughout our in took of and which the is Adam here demand is people That's reduction place first that obviously the consumer the United significant

our of some customers However, export. do

is they've that So adjusted that the we've being them Northwest. that on especially on gone pretty about half related the in one globally, I all said, and the Also, of Pacific feel agriculture, of got dynamics half as segment coast have some to year. good the think, of year, issues segments, these out I driven of given a is the big and the had weather really west more we second much the second

Operator

next question with Rodriguez of UBS. is Edlain the Your line from

Edlain Rodriguez

market. One quick question on the e-commerce end

that on to keeps have night? like And at awake this packaging the of actions is they're You sorts have to taking kind materials. do something companies Amazon, you like all reduce What of impact you industry? this expect

Tom Hassfurther

is Tom. answer I'll quickly. real This that

SIOC, into have own get product Because, it’s that we large as you're as to container that no gravitate is marketing it's next there's comes some are this it to a and to initiatives box takes but in compete think products. One neutral and towards think business. surface to corrugated still on and going ship referred I the impact Amazon's to that can I containing, is the make here. easy, there It's have of to to, to the when better to think, are business, I probably going couple going that years, net going protecting the is, lot products over still or puts corrugated. be assumptions more

of So to base attuned very our a this customer redesign. is and lot they're for asking

goes now mind that to centers to longer to keep want make got significant, the and by through the all a wanted there. sure fulfillment of they that the distribution to gets it want they way shape Amazon in been time their perfect because That redesign and product. they through And protect customer. brand, in all box the centers And advertise way it has also that handling, be to through, they've goes their cycle that brand

products from market to less get larger think in a own be little of we're another I going some to as think these growth So ready that and Amazon container I market. one requires ship to more from

Edlain Rodriguez

job on price And supply so done one supply rolled Could a back. one better without done increases sudden free have happened like better the producers of industry of the imports, in quick much managing terms have that job sheet, inviting in uncoated have issue? to demand managing all a be could a the reduction industry that

Tom Hassfurther

answer it me this Let way.

XX been and Europeans then years then back supplied you South I've a And out go was you it's Asia. world product, was -- If this for sheet industry back and And free in and through spread Americans. if now. America then uncoated the

imports always a been So have factor.

that's So that. am going to I how answer

Operator

we have with Wells line the follow-up a from Fargo And Gabe Securities. Hajde of

Gabe Hajde

on they're commerce through going I'm about high Thank operational of I the you depending that porch the retail you think an I When think of dialog guys dumbing as supply box versus that? is through touch kind up you you from chain, called, interesting, things what value with customer customers chain like Tom, had any customization, if I particularly the of have down e-commerce. it's think e- one perspective, bandits, been thinking differentiated something something might the be or through with inquiries like have guys. chain, outside found discussion the yourselves brought a that. about branding curious and has or kind supply And to of and things

Mark Kowlzan

way shelf. I their quite product SIAC, mentioned, mixed protecting customers in advertising and more brand you’re would think interested any about showing when a And a, can. the a on say I are bag, trend But you're I not just Gabe, about frankly. especially their talking brand really they talking towards, a is it's as in

value. the And, needs, way various all and really a it we value our business in XX,XXX we that and marketplace and have to where place can core comes on on plus as because adding that the to many competency is helping hard we're the mean, very, our advertise us very that very I've the we're box. guess So focused fits product to grow your is, well, And do, on when have said that kind customers we I customers focused times, best of to this any can. of take

Operator

Instructions] closing have questions. see comments? there [Operator Do that you any no I are further

Mark Kowlzan

to today the quarter us Have Thank you, a day. joining you in nice Bye-bye. talking for Yes. call. look during October and with we everyone, forward third

Operator

concludes This Thank conference you call. your for today's participation.

disconnect. You may now

Packaging Corporation of America (PKG) 25 Jul 192019 Q2 Earnings call transcript