Packaging Corporation of America reported unaudited consolidated earnings results for the fourth quarter and full year ended December 31, 2017. For the fourth quarter, the company reported net sales of $1,684.3 million against $1,476.6 a year ago. Income from operations was $252.0 million against $192.9 million reported last year. Income before taxes was $224.0 million against $168.5 million reported last year. Net income attributable to the company's shareholders was $266.8 million against $109.6 million a year ago. Diluted earnings per share were $2.84 against basic and diluted earnings per share of $1.17 a year ago. Capital spending was $116.8 million against $86.2 million a year ago. EBITDA was $359.7 million against $286.5 million reported last year. EBITDA excluding special items was $351.1 million against $292.8 million a year ago. Income from operations, excluding special items was $251.3 million against $201.3 million a year ago. Income before taxes, excluding special items was $225.1 million against $176.9 million reported last year. Net income, excluding special items was $147.1 million against $116.1 million a year ago. Diluted earnings per share, excluding special items were $1.56 against $1.23 a year ago. Excluding special items, the $0.33 per share increase in fourth quarter 2017 earnings compared to the fourth quarter of 2016 was driven primarily by higher prices and mix $0.51 and volumes $0.12 in the company's Packaging segment, higher volumes $0.01 in the company's Paper segment, and the final insurance recovery related to the DeRidder Mill incident $0.07. These items were partially offset by lower prices and mix ($0.03) in the company's Paper segment, higher freight expense ($0.04), higher input costs ($0.04), higher operating costs ($0.11), higher converting costs ($0.02), higher annual outage expenses ($0.10), and higher corporate and other costs ($0.04).

For the full year, the company reported net sales of $6,444.9 million against $5,779.0 a year ago. Income from operations was $931.2 million against $780.3 million reported last year. Income before taxes was $828.6 million against $688.5 million reported last year. Net income attributable to the company's shareholders was $663.0 million against $445.2 million a year ago. Diluted earnings per share were $7.07 against $4.75 a year ago. Capital spending was $343.0 million against $274.3 million a year ago. EBITDA was $1,322.6 million against $1,138.3 million reported last year. EBITDA excluding special items was $1,342.1 million against $1,154.5 million a year ago. Income from operations, excluding special items was $961.2 million against $799.4 million a year ago. Income before taxes, excluding special items was $860.4 million against $707.6 million reported last year. Net income, excluding special items was $569.1 million against $462.0 million a year ago. Diluted earnings per share, excluding special items were $6.02 against $4.88 a year ago.

The company expects inflation in almost all areas across the company's entire cost base. The company anticipates continued higher freight costs as well as higher labor and benefits costs with annual wage increases and other timing-related expenses. Although the company anticipates price inflation on recycled fiber to be fairly flat, the company expects some inflation in the company's energy costs and with most of the company's chemical, and repair and materials costs, and seasonally colder weather will increase energy usage and wood costs. The company's depreciation and interest expense will be slightly higher as well. Considering these items, the company expects first quarter earnings of $1.52 per share.