Packaging Corporation of America reshuffles top executives

Published 26/02/2025, 22:06
Packaging Corporation of America reshuffles top executives

LAKE FOREST, Ill. - Packaging Corporation of America (NYSE:PKG), a $19 billion market cap company with annual revenues exceeding $8.3 billion, has announced significant changes to its management team, set to take effect in the coming months. The company, which maintains strong financial health according to InvestingPro analysis, is a major player in the containerboard and corrugated packaging industry in the United States and is preparing for a strategic transition in leadership roles.

Effective May 1, 2025, Robert P. Mundy will step down as Executive Vice President and Chief Financial Officer, a position he has held since 2015. Mundy will continue to serve in an advisory capacity until his planned retirement on March 1, 2026. Kent A. Pflederer, who has been with the company since 2007 and has served as General Counsel, will succeed Mundy as Executive Vice President and CFO.

In addition, Thomas A. Hassfurther, who has been with Packaging Corporation of America since 1977 and has led the corrugated products business since 2009, has been appointed President of PCA. Hassfurther will continue his reporting to Mark W. Kowlzan, Chairman and CEO, and will now also oversee PCA’s strategic growth efforts.

Furthermore, D. Ray Shirley, currently Senior Vice President of Corporate Engineering and Process Technology, will take on the role of Executive Vice President, Corrugated Products. Shirley, who joined PCA in 1996, will report to Hassfurther and manage the day-to-day operations of the corrugated products business, while continuing to oversee PCA’s engineering and technology organization. The company’s operational efficiency is reflected in its strong cash flows and ability to maintain dividend payments for 22 consecutive years, as reported by InvestingPro.

Chairman and CEO Mark W. Kowlzan praised the contributions of the executives, highlighting Mundy’s instrumental role in PCA’s growth and success over the past decade, Pflederer’s significant involvement in strategy development, Hassfurther’s 45-plus-year career and leadership in profitable revenue growth, and Shirley’s successful execution of capital projects and operational expertise.

The company, which is the third-largest producer of containerboard and corrugated packaging products in the United States, operates eight paper mills and 86 corrugated products plants and related facilities across North America.

These management changes are part of PCA’s ongoing efforts to strengthen its leadership team and position the company for future growth. The information is based on a press release statement from Packaging Corporation of America.

In other recent news, Packaging Corporation of America reported its fourth-quarter 2024 earnings, revealing earnings per share (EPS) of $2.47, which slightly missed analyst forecasts of $2.51. However, the company exceeded revenue expectations, bringing in $2.15 billion, showcasing strong sales performance. During the earnings call, it was highlighted that Packaging Corp achieved record shipment volumes and production levels, reflecting robust operational efficiency. For the upcoming first quarter, the company provided guidance anticipating an EPS of $2.21, which is below both the market consensus and Truist Securities’ estimates. Truist Securities, despite lowering the price target for Packaging Corp from $282 to $265, maintained a Buy rating, citing the company’s strong track record over the past six quarters. Analysts from Truist Securities noted that increased pricing contributed to significant benefits for the company, with further price adjustments expected in early 2025. Packaging Corp plans significant capital expenditures, ranging from $840 million to $870 million in 2025, focusing on box plant projects to support continued volume growth.

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