PKG - Earnings call 3 2023 | Packaging Corporation of America

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Operator

Good morning, everyone, and thank you for joining Packaging Corporation of America's Third Quarter 2023 Earnings Results Conference Call.

Your host today will be Mark Kowlzan, Chairman and Chief Executive Officer of PCA. Upon conclusion of his narrative, there will be a question-and-answer session. Please note that this call is being recorded. At this time, I'd like to turn the floor over to Mr. Kowlzan. are you when proceed ready. Please

Mark Kowlzan

Mark Good Thank Executive Robert me for Earnings on Financial thank CEO Vice I'm all Chief the and call Tom who and in you, Release PCA, Packaging Hassfurther, with Call. XXXX President, Jamie. business; participating Quarter Corporation you Third runs Mundy, and Packaging is morning, our of and Chairman Kowlzan, today Officer. Conference of America's our

quarter provide share. third and with Tom wrap an of And we'd As turn questions. Yesterday, to million then overview call then then $X.XX be usual, and I'll the the income take the $XXX or I'll we begin and call of Bob, further I'll results, over third to reported net per glad up, who things will details. quarter

Excluding $XXX quarter third $X.XX net share. Compared $XXX net of or the was million income $X.XX per income XXXX special items, quarter share. third to of million or XXXX per

$X.X XXXX in XXXX third million were items, million quarter, $XXX sales the net XXXX. was in billion excluding for billion quarter and in and Total EBITDA in Third special company XXXX. $X.X $XXX

press for costs items the quarter for in schedules of quarter income as primarily were $X.XX Jackson, well Details XXXX release. certain earnings all related conversion that Third included per the for net Alabama share of expenses the third activities. special included accompanied mill of paper-to-containerboard items at special XXXX our as

of and recycled items tax, operating and quarter volume $X.XX; energy and lower lower along Paper a XXXX $X.XX; share converting favorable second Paper plant XXXX in the by XXXX in resulting per guidance logistics items primarily due outstanding the volume $X.XX. the other and lower $X.XX of compared primarily and Excluding was share $X.XX above the in $X.XX, with third The prices to by $X.XX. in lower mix outage quarter costs higher volume $X.XX in lower Packaging offset share partially segments; lower expenses, included of $X.XX half segment, costs, our scheduled from repurchases costs. prices $X.XX freight from $X.XX; primarily price segment, Paper $X.XX third mill of higher third count fiber were and of execution. Other share, special maintenance operational $X.XX; items, expense, of mix higher and and depreciation the the the resulting lower operating expenses lower higher $X.XX; earnings expenses, in per to the decrease and quarter driven results $X.XX; segments These lower and converting and Packaging for were

usages, and corrugated machine Looking initiatives of at EBITDA, of year's our program continued of as spending of the a efficiencies, special margin mills XXXX $X.X our and resulted labor material $XXX quarter $X.X areas included sales million internal chemical margin. The with benefits fiber, execution again and on focus great billion once in our million $XXX versus delivered results. of energy the such equipment excluding and process improvement products Packaging This generation third XX.X% usage a and capital billion EBITDA in in impressive facilities and items costs. of XX.X% numerous of with sales and operational last segment. of

Wallula containerboard which in was primarily of to approach market-related the quarter, by resulted entire for This Our benefits achieved delivered XXX,XXX approximately management demand mill we anticipating. downtime cost-effective a of the are supply with the tonnes. also idling

XXXX No. outages first the Jackson, of I'll now our final at lower the to with mill on levels. conversion our restart the the inventory the we ended the Wallula, desired demand corrugated machine further on fourth to containerboard X phase plans the quarter levels the for outlook and in containerboard who'll details turn demand, the planning improved Packaging scheduled we to with over quarter quarter However, with our on bring current order mill for maintenance our the business. machine anticipated. Based inventories the than in current segment, together sales and of #X stronger to completing at Alabama it Washington during mill, Tom, are provide for

Thomas Hassfurther

last Mark. though second XXXX, total the to of X.X% and shipping and you, per buying sales Package Thank X.X%, preferences containerboard total per X.X% X day Corrugated shipments nondurable compared were volume continue Versus interest above even were X.X% less X for impact were both quarter spending, of shift quarter towards day. up goods. inflation XXXX. Demand exceeded was segment purchases headwinds our and of less above last the a consumer estimates. third were tonnes was service-oriented volume third higher more second quarter. rates and durable XX,XXX shipping guidance days persistent quarter year's of quarter with shipments of negatively down consumers' to workday the and there up Outside from tonnes shipments X,XXX up product year's shipments

domestic the compared the prices per third is were quarter. the shipping year, share $X.XX published the XXXX and However, Relative the behind below corrugated of together we volume products quarter although of to the expect translate and there year this we per and to last XXXX. that products we throughout that second to year. We the earlier were in mentioned half quarter, reductions many saw customers third the to down one quarter, into grades benchmark quarter and was to second them, of their industry containerboard quarter late that, during were hopeful and last us boxes fourth continue third improving share the compared momentum that mix $X.XX destocking occurring and telling day of that would less the inventory occurred that and

to and third down XXXX. Export per now to compared containerboard I'll back turn second $X.XX the $X.XX prices to quarter XXXX down and mix were share compared per of quarter Mark. it share the of

Mark Kowlzan

you, Tom. Thank

X% decline driven Seasonally versus quarter from XX.X% of to third volumes XXXX prices were million mix with about was XX.X% X% from third the XXXX's levels margin EBITDA to almost than stronger sales of Jackson the by quarter paper third sales and million items X.X% the excluding declines in the index this margin. second the year's of the $XX of that being compared and quarter. Prices higher $XXX from of sales our special due quarter no and third and of down XX% quarter cut 'XX in about the earlier year. in $XX the in down third a quarter our year's mill and the up occurred Paper size quarter last were converting printing with at million or XX% and second Looking or million segment. EBITDA, a $XXX

remained Our focused Mill Falls operations, maintenance And efficient International the similar Bob. the results well. over planned outage managed great delivering to their for facilities, cost-effective it quarter. and packaging on the I'll very turn X-day to now mill

Robert Mundy

by contributions. $XX payments Thanks, flow other state capital for million, dividends quarter more the $XX totaled and quarter Common million. payments totaled free Mark. pension million $XXX during $XXX operations provided $XXX of expenditures the The million. Cash and and income benefit with for tax federal during million, post-employment million included stock of cash significant cash $XX

$XXX per and during our was the of we marketable billion. XX of $XX over total repurchased of We $XXX.XX cash, on securities, share about ended our approximately quarter at for million including of just addition, average liquidity million. an quarter a shares In stock September XXX,XXX $X.X with price the

to Mark. Lastly, the total $X.XX for $X.XX XXXX expected our third year planned and I'll $X.XX full turn the the it annual quarter to over now over about maintenance to was quarter per now share. outage bringing expense just back is share, fourth be per

Mark Kowlzan

Thanks, Bob.

X we to as move expect appropriate inventories day -- from plants per to downtime levels the third our shipments fourth third less shipping compared our will day quarter, into market-related we build as products the segment, in along with we back in our although corrugated ahead, into Looking facilities, the quarter. the forward our Packaging higher less have

We lower direction estimates, some fourth made happy company constituted entertain report to items, on questions, on expectations SEC. third volume being results quarter you rich decrease as lower realized driven seasonally benchmark the maintenance risks scheduled those on in quarterly outage will the costs of and prices, we'd statements inherent that, but statements. must quarter trend prices, expect stronger all due annual majority the the do seasonally mix. In published the with economy Form remind and Depreciation and well could converting filed in and as forward-looking and to statements expect be restart call index XX-Q our in the expense risk with per in be involve be of the to throughout as statements. These forward-looking and the declines also those subsequent on including less prices and index we compared increase earnings primarily Form of were materially based costs quarter With segment, current grades XX-K Operating assumed is the Paper higher of third the expenses and share. energy $X.XX projections May lower differ and of and expressed mill. I seasonal these Wallula Actual any the we've fiber from prices. factors lower. Considering higher are to the recycled reports uncertainties, will the in by average the the slightly the mix estimated that identified will of the be to a of

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

Operator

Bank America first Instructions] Keller Securities. question Our today comes [ Cashin ] of [Operator from from

George Staphos

quarter. Staphos. today at I George just conference this dueling Congratulations doing time. on calls It's the --

a in much some be we factors number costs. were both have how bit for in market's performance? Can congratulations and if a you there's little But always right room any quarter pickup further where enumerated going can Yes, the again, on now, know at you carry improvement projects, particular in was but and talk to And of converting fourth -- and look as the the from performance. the operating of on out you a terms number that costs I of we're OCC there do sources what's improved talk the operating seasonally So higher. to 'XX you that. of you to forward? to the converting lower

Mark Kowlzan

It's we've hundreds years, we're the benefit constantly the improvement as said place. of had year. continuous hundreds that over year-after-year a And in we've of projects doing the and

process with got of management continuous organization think nevertheless, you continue technology the clearly that are to ongoing and and on across it excellence. number a been in in daily But the execute. local Tom, an the has Some it's some on will operational are about concert if going just And a plants I examples just and go you've think we for years, continue on. to the operational great cost takeout there's this And the box board. with mills, box focused small, the plants large. activity

Thomas Hassfurther

Yes.

think, for this all capital I of box effort the and the really the to to and deployment those plants really get right what volume existing that an the George, those realize plants plants done rightsized is we've to really box coming is streamline got and now. box we've growth in the

the we're with pleased pleased. We're results. very very So very,

Mark Kowlzan

year, George, as are already what's the far on talking horizon what year, next been have and could next opportunities. about as expect, as you for we're the

the on And in place we're continued while labor improvements in impacts how in operation able so to we're energy with input address just of how and and conversion we've that, to got needs takeouts operational customer and cost that and requirements capital after and of what cost. looking are be we're a at along at cost that. very terms look the in going these And market good being plan deploying always solid that going we where terms addressing

plan also. next So good year we've for a got

George Staphos

Mark. It sounds it. surprised by that, like Wouldn't be

rebuild it's to and for fourth I demand what bookings isn't from case, what things is down And and of a But inventories bit maybe to some Jackson standpoint, know customers does macro the terms are So again, pull are saying the your for a need quickly on what customers how need hard part know last be? your quarter, question, talk outlook, of conversion. hopefully, saying? what we it slide, talk should but restart your going those mean for PMX it my back us you to you realize map in your But turn think again actual of how billings to Can how over. it about we and fourth be the a Wallula, mean the about last this does and I I'll are then Mike. And being about the about Wallula, softer, could wind little up quarter you this volumes? if to how bit early to 'XX? if

Mark Kowlzan

said, we always needle we've is to as just move Wallula, as opportunities on our demand. And going far we're have as to Yes George. Thanks, needs. the of to Wallula one run the

over of we'll getting need weeks, we demand it that and the started so the holds next our now, trajectory will needs, that year. the current up X year. No. If will through on of by Wallula the And next it through right couple running just course fulfill is anticipate

And what issues. -- to so at we always to to we got look can on have, minimize our run transportation But will we the the targets we and inventories supply and the demand. up system internal be own will down, always opportunity logistics to want our flex we'll and as we marketplace. We've

go current And why don't that's that. cut-up. into Tom, So how you I'll then, answer the box

Thomas Hassfurther

Yes.

have talking we is tag be demand, of didn't and And along what Let relative just we we Mark with what running That me restarting about said first pure the if simple. just Wallula, to wouldn't demand. to do. kind

that Now quarter to low need of George, I in at a little XXXX first really was demand. bit, the our to you think terms look of calibrate point

demand is that quarters, Our going currently of going number forward. higher than higher a just and now is in X% couple

we cut-up quarter -- that's that got of our up also relative the because numbers, side -- driven number and the than the It's the is these business demand significantly in more are remains strong, of we the take strong. because I need little at quite XX% you a the high the actual really again, so for think are for that bookings billings, and had real we lower for is lot backlog reason box that's else. And very at a bookings the again, being then we've come to this a key ways out. But So in Wallula. here anything the beginning. And to bookings our come on and low cut-up in incredibly why the

quarter where about are in good very we the feel certainly we into So year. entering fourth and next

Operator

comes from Weintraub Mark Seaport. question Our from next

Mark Weintraub

you your up, mentioned first just versus, Tom, now reference think, I following demand to an quarter. X%

an that So math. you're on in expecting to number is Because to is that that average of do sort of bit little think day quarter a sort mentioned? you of was basis? And about how what fourth again, trying the I just

Thomas Hassfurther

mean, I remains trend positive. Mark. Yes, still our

So up. we quarter some fourth compared when had will day be holidays get the correct fell. extent. 'XX. And I calibrated -- important because way to of think given look it's kind to an in we again, the really quarter And 'XX, at extra fourth the of the FBA In to there way the

the And over really So we call in 'XX. a going were fourth actually quarter. but quarter third demand. the hit of X%, rock of again up quarter fourth quarters, -- in in terms what 'XX in of so when just of up that as I the we're quarter look number I course, and of bottom of couple at we said, in 'XX first up the a is we then, couple of percent And

Mark Weintraub

it. Got

project, And be? it is the And remind in you what and the Is us result could going quarter? just fourth okay. Okay. just quarter to on the the end -- happening first Jackson

Just on that color would great. be

Mark Kowlzan

the productivity dryer next the of be installing additional first the in in of gets machine. fourth cans also some mill will work to the back into up, second outage, the end the the talking to will the quarter completion related of to mill. press necessary the is that But XX it's number final a capability. But moving late the the the press of final phase high-pressure it done quarter. big and work We're care of about take It's longer phase a work you're drying cost the the of section. No, position the modifications that be but but speed, year, press, regard enhance that new shoe the modifying

there and the So ]. that this depending cost far when right mill mill. be out be it on Velbasta with work [ is position, in as will of DeRidder will coming and done, as competitive Counce demand That

Mark Weintraub

just there's tonnes would at for the of with if per And a this you're what it, it that Great. to the me I or look to. way you way last the part was? a phase achieve to remind, be cost what was think expecting to like tonne calibrate per or it this And XXX,XXX amount helpful number whatever if correct year, best

Mark Kowlzan

you to the now the answer machine if say machine -- I'm right daily on day, end that a recalls. going Bob where basis, depending think But not going the at if want about I X,XXX tonnes machine X,XXX X,XXX because this. a this the on is to I'm to don't been wrong of we've thing. over the needed. what been running to the well done done tonnes let he day The when capability day anywhere day. will day tonnes project, of with has flexing machine target X,XXX a the that a from with we're we're be tonnes when a we But

you a if use XXX your tonnes. So year, annual you'll get a day

Robert Mundy

that improvement where run we increases your obviously, phase from completion this and be close versus second we that your ton, getting fixed benefit $XX indirect your cost. all coming the most volume after costs Mark, today from variable-type costs you're additional we where with -- will to like hit and a your it's in or are no the of in the direct Yes, when rate of

completed. get you So on benefit this nice huge a project is

Mark Weintraub

Great.

times we And can XXX XXX? the whatever just or X,XXX or so take

Mark Kowlzan

be it most Hemisphere. of X,XXX the me, the goal linerboard be use will machine to -- myself day Just you ultimate X,XXX in we're someday knowledge, at between and productive, machine math, for whether X,XXX could machine it. when be low-cost simple done or will some Western a around the But but tonne that can you the -- it my fine-tuning people

Mark Weintraub

terms , just XXX mix XXX the a factor was in guess, Curious, Or of price? of corrugated? in much one. quick was mix I factor last that much the of but domestic, One Fair. mostly is is a

Thomas Hassfurther

in both a weights. in mix uses factor No. there, big end is in basis and

And stores, -- just there's still a UAW And starts heck in graphics underwater as a is. of starting as a by time, on higher mention going The really again, it's us, is pricing last get products, and I still lot taking that segment with for changes our housing good strike have I'll been which the what go into final course, So that's of interest -- impacted. segment, now building that's the to mentioned it what's effect automotive rates. are segment brick-and-mortar the affected is mix and to the been that and place of impacted. remains

all Now the on higher segments side. to of price those tend be

of been segments doing However, at we've publications impacted the haven't other we've -- of you've lot all seen what that we're in other got and And quite than -- we well. and price. in a are been terms much

Operator

Our Roxland Truist. next Mike question from comes from

Michael Roxland

environment. tough Congrats another quarter despite on solid

Mark Kowlzan

Thank you.

Robert Mundy

Thanks, Mike.

Michael Roxland

of during - about a if just little kind little cadence of color a wonder Just could the more more I quarter. the you provide shipments

the Just should a say. poll, little color on I elaborating more

end the different of Some markets.

question building automotive good but provide what as anything as progressed? markets to cadence you significant you segment, color products the prior end Some really the quarter the during And could in some the on some on showed growth maybe quarter? the

Mark Kowlzan

things up... when then started And markets. End picking

Thomas Hassfurther

Yes. Yes.

ag, told weather-related, especially and for have you I business other very had I market coming dissipitated, kind of mentioned, one and headwinds those asking good we Mike, prior of ag pretty -- I most Well, here, mentioned but season up. Okay. had we're that outside I of lot that that looking got I much in a you're was markets those of the ag what think a

a going to lift. So . that's be

at of I of of good. a very predictable destocking out is a And has quite look very we've lot of and the e-com corrugated given and that I gotten we're course, becoming think our and lean and larger those the moment. And sorts that segments. Of take have other share little good customers the beverage fact best business, are remain general, -- segments forward. And this all the now food mean, a bit in to and way, more steady or of going operating of it's selling all looks kind inventory continues of the either news

I so question. to easier And that number a answers a lot of what's these it's predict in your hope segments. happening

Michael Roxland

remaining face? you benefit. does. of production tonne It think about last mills talk I being quarter, now $XX helpful. as able mills No, that Wallula, you you very per mentioned because recall any any bringing back of can down, to about optimize you your that's that headwinds -- achieving your And Wallula other might were and

once So any fully that you on your mills expect anticipate or and up is headwinds Wallula running? other could

Mark Kowlzan

because inventory the capacity. situation, currently, again, of the run we'll no, mill have Well, entire system to to

have equally ran then to so perform the And to third quarter, the during will efficiently. running full and out, we'll continue and No. mills have as X X come that Wallula up

Michael Roxland

past help in One final question, you of noting and the growing Jackson thinking think M&A? think let's next about I X of guess, XXXX? once Mark, conversion post how next? phase, No. the Falls, here. say, you're does you business can year, from Is squeezing growth the the about us business, of you're of How the the we should come where I growing conversion resumption

Mark Kowlzan

we'll customers. of local continue those if look and grown over with broad we've we to the the accounts decades, accounts at our with business. enhance business their with and most grow diverse, And Well, nationwide have book still you always help

always so Tom, you the that's want a on do comes opportunity that? where of elaborate from. And to lot

Thomas Hassfurther

going in back. come are I are as Well, to I those that segments I down, addition, that segments think think these mentioned,

base So as show best they're the entire customer continue be -- the we'll value to grow business And accordingly think able up. is in going to and operate marketplace to we what back well. to our demonstrate an

That's and at whole what well we're our make moment. demands closely aligned. to project we want Wallula driving like possible working we're and outward see -- those customers, what's the looking with we'll and to So very constantly the look what's sure

Operator

Gabe from Our comes Fargo. question next from Hajde Wells

Unknown Analyst

This is [indiscernible] on for Gabe.

or targeted for can about Jackson's year-end the level, kind inventory when outage. you comment on looks maybe just the QX, what thinking about your inventory just thinking So like of

Mark Kowlzan

quarter, I But number up -- goals in -- what shut have give never the you, that far will in we in the were the annual is schedule we absolute situation the we a a our demand. especially the we what we opportunity course, downs for had can in but have third numbers, the Jackson out satisfy under we than that's mind rest targets influence the to containerboard lower and place when Wallula were and number, in year ending started started and conversion when mind, of we the inventory, have months be to that will tell we that shutdown system. of We positive dramatically for of back take plans then other the the the first get X in

the us the inventory And you get into New our months Year to up work absolute to so X to without some needs us where and an -- have year. then of through the number, we do get first be the it giving get

Mark Weintraub

anything should Is does we of there with anything as or Wallula. -- restarts, variable change mindful -- thinking about something just structure the any be And Okay. mill cost fixed? that the

Mark Kowlzan

to basket cost because the because a box Pacific Wallula, local no Again, Pacific surprise, the energy it the our remains us our with critical of the is Northwest. in higher it's fiber of But mill situation and plants. Northwest mill

could change. taking position big need cost currently X advantage but change. that in that so We're of don't machine. machine regard, the We And won't the running, running the No.

run will demand. to we again, So

Tom, satisfy need. will we to add? do want what you We

Thomas Hassfurther

as heavy a large for course, in Wallula very rebound. respond that there box that's us, market would certainly the I continues react with gives And up marketplace to more mill flexibility add of operating that lot a quicker as just ag and to it in a to us plant well. Yes.

give be will So in that -- flexibility of us this in some advantage marketplace. will this terms

Robert Mundy

just fourth to in comparisons Alex, I'll again, add we're back our the third. the we doing quarter, that Wallula bring when on

As -- costs we is our things Xst it with and incurring have Mark restart we other labor as get mill. cost been of production. we November, highest And that obviously, the ready machine so no can in said, things, we are

So -- are restart. but significant cash cost there no to

to accounts type if some it's raw obsolescence our online. it if as almost for comparing but -- is of coming cost bringing you But There you're and as costs, may look Wallula operating those quarter, at be does, it some just write-off there. half things, significant back noncash, material from third nothing type increase, costs the our increase restarting the far

Mark Weintraub

Great.

just about That's how my of you to just And we percentages, question high still XXXX, 'XX? is still for good. of levels can I it's quarter thinking about maybe thinking I just another kind how maybe get -- last Okay. guess, understand but frame you're 'XX? have the you about think

Mark Kowlzan

I at that the just $XXX year of we're for continue would year, call it's advantage we'll year and pace And call take that plans anticipate at to deployment, this cash a to about Well, continue been, of which that if bit level, would be the the in excess July then looking our trend an you on we and the continue think this about spending that use were shareholders. a next to for on but the am, how we're capital million discipline is But that other opportunities run macro to being what cash. to There we goes. level if demand. deploying next and in other little this I we capital going cash generated, where do, bring the value which we are be to to and talked where investor, I do thing

of and all and benefits advantage execute the care more with our customer spending to we've completed continue that of been at again, bear, look capital taking get work we'll, of so the And our Jackson and and base bringing to take opportunities then customers. to continue

Operator

Anthony from Our next Pettinari question Citi. comes from

Anthony Pettinari

new questions. this We've nonintegrated. recycled being year. capacity the added seen two And just some I of had I to guess a integrated, some large amount market

we talk look what seen the second, to about market? do been the and more think perspective, next in the you or opportunities maybe you've board unique see how I still you've do PCA's Historically, the you seen? haven't mix? a How maybe picture could impact virgin some we first, And guess, that then virgin market there think add about over this guess, I maybe producer. should you U.S. on of kind for role process a Are that OCC? Or recycled playing about decade? capacity? big

Mark Kowlzan

linerboard we the of We've flexing a producer, virgin always been a our of have number mills. primarily capability medium

of I to one people Counce, recycled conversion DeRidder, give the cost northern years Jackson again, the year flex that last we're think all look advantage take look -- not of the and basket today And of the availability. some the terms we'll our put invested it from into that still these Tom? and to recycle. it. go does if heavily all we've think do decade. going mill, balance. most We all at mills But now But over fiber And same in you now, us in opportunity we us I XX have in capacity. and again, time eggs Wallula, understand our fiber opportunities,

Thomas Hassfurther

it They're out impact to have the open these I a even Anthony, market, had seen impact bearing virtually of with somewhere mills marketplace of having else. like all in no we some in let's at the is the would, the told from going have exactly to these the mills. say, find integration you home -- limited one-offs, some very

and they're open market. that into the sell integrated and that into might to the open the to one-offs even sure, attempt demand, ones are sell are Now market. the running Those be we'll to attempting I'm not

But -- customers. great And want finding PCA the domestic we quality again, our a linerboard got medium. with we've for that fact of and our we're take care it's stick to customers that

board. any zero the think probably very service supplier. And to interest I absolutely Our is they've true moving across And good. other shown that's in

that our that. answers I advantage needs a back can with today. that tailor find you we've you that's if what our And completely to have. this was competitive to PCA we tag fiber whatever and the mill in a the ability got to tell on back So And Mark just heavyweight we've liners and huge our of we system, is are, market basically adapted go customers whatever and value can was flexibility, that saying, hopefully, go and you history mills our -- to --

Mark Kowlzan

One conversion stable DLK, low. relatively think recycled price factors, you high, input very the swings low, prices OCC, been costs if high, have the of virgin if input dependent virgin versus have cost solely about over speaking, and fiber costs, you're and been decades, the wild, on fiber,

is, what place trying a so to cost good recycled. conversion anticipate be And you're is if your XXX% not to

where So we we like are.

We will continue with this model.

Operator

Our comes next question from Instructions] [Operator Phil from Jefferies. Ng

Philip Ng

to I said Mark, with but off bookings you far, aren't wanted Bob, the bookings know box XX%, so This I XQ start mean, are Tom. guide John. for shipments. I actually billed. up implied is

kind so, up day to per being Any it? I'm if that or give is way your about that? less think shipping XQ in Is It a on for you quarter-over-quarter, color seems the that about release day. XX.X% basis guide the press extra XX%. at So of imply X reading on to just up least XQ, could right

Thomas Hassfurther

a just walk No, through you little that's if But think turn Phil. to about not the calibrate right you can it, it if it. can going and he this maybe to I'm way over Bob bit, see to

Robert Mundy

I Tom. can certainly from at a anything how but sure we arriving see that getting were out. there. No, not obviously you're maybe talk it's would I happen, to afterwards, that put if thing sure we'd Phil. I'm be off-line. just if that that just don't tremendous just we talk Not but or said how not sure Well, you're can, But Maybe

Philip Ng

good are more It pretty expectations ] and not generally it get terms And [ And little serving just Sounds are then to good. the they're going whole demand. the in actually good? contrast the you market. still if visibility. in seeing here obviously, to coming fourth holiday even bit said mid-teens, what with not seems quarter, and the expectations -- customer, know sounds it's like in a pretty going fourth of quarter for they're holiday customer Ricia demand has But I things by obviously softer just through

Thomas Hassfurther

say be the demand Yes. I holiday going is yes. to would strong,

Philip Ng

just one economic for the that downtime? Great. called economic into was whole that or clarification. downtime the The last that company for And just tons quick Wallula XXX,XXX incorporated is out, of you

Mark Kowlzan

anybody queue? I guess Jamie left Wallula the we conclude. was on That will downtime. the

a day. I you want you I our forward for on call. full and having join moderator of have taking joined end that, think, to at for look January we've today, for care. the good that lost those to call. us Take I you and With time, quarter year of us our the the thank But fourth

Packaging Corporation of America (PKG) 24 Oct 232023 Q3 Earnings call transcript