Financial Data and Key Metrics Changes - The company reported first quarter net income of $204 million or $2.26 per share, an increase from $155 million or $1.72 per share in the same quarter of 2024 [5][6] - First quarter net sales were $2.1 billion in 2025 compared to $2 billion in 2024, with total company EBITDA, excluding special items, at $421 million in 2025 versus $333 million in 2024 [5][6] - The increase in earnings per share was driven by higher prices and mix in the Packaging segment, contributing $0.78 per share, and volume contributing $0.27 per share [6][7] Business Line Data and Key Metrics Changes - In the Packaging segment, EBITDA, excluding special items, was $409 million with sales of $2 billion, resulting in a margin of 21%, up from an EBITDA of $326 million and sales of $1.8 billion with an 18% margin in the previous year [10] - The Paper segment reported EBITDA of $40 million with sales of $154 million, yielding a 26% margin, compared to $41 million and $164 million in sales with a 25% margin in the first quarter of 2024 [17][18] Market Data and Key Metrics Changes - Domestic containerboard and corrugated products prices and mix were $0.72 per share above the first quarter of 2024, while export containerboard prices were up $0.06 per share compared to the same period [12] - Total volume and shipments per day in corrugated products plants were up 2.5% versus last year, although the Paper segment volume was lower by 7% compared to a strong first quarter of 2024 [13][18] Company Strategy and Development Direction - The company is focused on operational efficiency, cost reduction initiatives, and capital project execution to mitigate the impact of inflation [7][11] - A new state-of-the-art high-efficiency box plant in Glendale, Arizona, has been successfully started up, increasing box capacity significantly and enhancing service capabilities in key markets [15][16] Management's Comments on Operating Environment and Future Outlook - Management anticipates continued economic uncertainty affecting demand but expects box shipments to be higher than the first quarter and above last year's levels [14][24] - The company is cautious about customer ordering patterns due to macroeconomic factors and trade tensions, which may impact future guidance [31][32] Other Important Information - Cash provided by operations reached a record $339 million, with free cash flow also at a record $191 million [20] - The company adjusted its planned maintenance outage schedule to manage economic uncertainty, resulting in increased planned outage expenses for the second quarter [21][22] Q&A Session Summary Question: Adjustments in guidance and forecast - Management noted that customer caution is influencing ordering patterns, leading to a more prudent approach in business [31][32] Question: Inventory and production levels - Management explained that production is being adjusted based on expected demand, with some small machines down for maintenance in May [41][42] Question: Higher prices and mix in packaging - The company effectively implemented price increases, contributing to better-than-expected results [50][52] Question: E-commerce growth and margins - E-commerce is a growing segment, but margins remain consistent as the company focuses on long-term customer relationships [56][58] Question: Rail contract rate increases - Management confirmed multiple rail increases impacting freight costs, with additional increases expected in the second quarter [70][73] Question: Capital expenditures - The company is on track with its capital expenditure guidance, with significant projects underway [72] Question: Containerboard supply and production - Management expressed confidence in meeting demand through improved productivity and potential adjustments in export volumes [144] Question: Basis weights and lightweighting trends - The company noted a general trend of decreasing basis weights, driven by customer needs and technological advancements [148][149]