Ryan Fox's questions to PACKAGING CORP OF AMERICA (PKG) leadership • Q4 2024
Question
Ryan Fox questioned the apparent decline in revenue per ton versus the rise in the containerboard index, asked which customers were frustrated with pricing, and queried why open market buyers would accept higher prices given market capacity.
Answer
CFO Robert Mundy clarified the revenue-per-ton calculation, noting it must account for declining export prices, inventory changes, and mix. An executive confirmed that 'both' box and containerboard customers were frustrated. EVP Thomas Hassfurther challenged the premise on capacity, stating that the industry sells MSF, not tons, and that the specific grades of containerboard required by customers are in limited supply, supporting the price environment.