Packaging Corp. of America reported a third-quarter loss below Wall Street expectations on Wednesday. This was due to rising freight costs, as well as weak export containerboard sales in the face of global trade uncertainty.

The Lake Forest-based company is specialized in providing paper and packaging solutions to various sectors including food and beverage, paper manufacturing and retail commerce.

Although packaging sales are recovering after a post pandemic slowdown due to a sticky inflation rate and cautious consumer attitude, they have been pressured by the high level of inflation, as well as by the low level of consumer confidence, particularly while customers deal with trade uncertainty caused by tariffs.

Mark Kowlzan, CEO of Kowlzan Packaging Group, said that the pricing for both paper and packaging will be flat in third quarter. However freight costs are expected to rise due higher rail rates.

According to LSEG, the company is expecting a third-quarter profit per share of $2.80, compared to analysts' estimates of $2.92.

Packaging Corp.'s net sales increased slightly, from $2.07 to $2.17 Billion in the June 30 quarter. According to LSEG data, analysts estimated an average of $2.19 billion.

The company's adjusted profit per share for the second quarter was $2.48, as opposed to estimates of $2.44. (Reporting from Utkarsh Setti and Anandita Mehrotra in Bengaluru, Editing by Devika Syamnath.)

(source: Reuters)