(Reuters) - Packaging (NYSE:PKG) Corp of America on Monday reported third-quarter revenue that missed estimates, and also posted a decline in profit hit by lower volumes for both packaging and paper segments.
Demand for packaging remains lower than last year as consumers spend less on goods with still-high inflation squeezing wallets.
For the fourth quarter, the company expects pricing to remain weak in both the packaging and paper segments.
"In our paper segment, volume will be lower compared to the seasonally stronger third quarter, and prices and mix are assumed to trend lower with declines in the index prices," said CEO Mark Kowlzan.
Revenue in the packaging segment declined to $1.76 billion from $1.94 billion last year, while that in paper segment fell to $157.9 million from $165.3 million.
While volumes took a hit in the reported quarter, the company saw seasonally higher pricing in the paper segment and lower operating costs for materials such as chemicals, wood and recycled fiber, reducing the impact on profit margins.
Packaging Corp reported an adjusted profit of $2.05 per share in the quarter ended Sept. 30, down from $2.83 per share last year. It, however, beat analysts' estimates of $1.93 per share, as per LSEG data.
Revenue fell to $1.94 billion, from $2.13 billion last year, falling short of estimates of $1.99 billion.
Shares of the company fell 1.24% in after-market trade.