Higher raw-material, labor costs offset boost from upturn in volume, pricing

Packaging Corp. of America said late Tuesday that fourth-quarter earnings climbed a lower-than-expected 15 percent, on a 4.9 percent upturn in sales.

In the final quarter of 2007, the Lake Forest-based maker of containerboard and corrugated packaging had net income of $44 million, or 42 cents a diluted share, up from a restated year-ago net of $38.4 million, or 37 cents a share.

Those results fell short of the 46 cents a share analysts had been expecting.

Packaging Corp.'s sales rose to $580.2 million, from $553.1 million in the year-earlier period.

The company noted that higher pricing and volume boosted earnings, but that benefit was partially offset by higher raw-material and labor costs, as well as the previously reported unplanned outage at one of its mills; the outage had the effect of reducing per-share earnings by 3 cents, the company said.

The manufacturing concern said it currently expects first-quarter earnings of 36 cents a share. Analysts have been anticipating earnings of 46 cents in the first quarter.