Business

Packaging Corporation of America (PCA), the containerboard manufacturer, has reported a 21% fall in third-quarter profit to $38m (£22.3m).

The company said higher containerboard and corrugated products pricing had improved earnings.

Its net sales for the third quarter were $621m compared to $591m in last year's third quarter.

The company said its results include an after tax expenses of about $1m, relating to the explosion of a tank at the Tomahawk mill in July which killed three people.

PCA's containerboard production was 621,000 tonnes, down 11,000 tonnes compared to last year's record quarter. Exported sales were down 13,000 tonnes from last year's record shipments.

Paul T. Stecko, chairman and chief executive of PCA, said: "Our earnings remained strong despite rising costs and lower volume. The August box price increase went very well as we achieved our price realisation targets and completed essentially all increases by the beginning of October.

"Our containerboard production was a little lower than planned as we adjusted operating rates to compensate for much higher wood costs and slightly lower than expected box volume."

PCA is the fifth largest producer of containerboard and corrugated packaging products in the US with sales of $2.3bn in 2007.

PCA operates four paper mills and 67 corrugated product plants in 26 states across the country.