Chairman and Chief Executive Officer at Packaging Co. of America
Good morning and thank you for participating in Packaging Corporation of America's second quarter 2022 earnings release conference call. I'm Mark Kowlzan, Chairman and CEO of PCA and with me on the call today is Tom Hassfurther, the Executive Vice President, who runs our Packaging Business and Bob Mundy, our Chief Financial Officer. I'll begin the call with an overview of our second quarter results and then I'll be turning the call over to Tom and Bob, who will provide more details. I'll then wrap things up and then we'd be glad to take questions.
Yesterday, we reported second quarter net income of $301 million or $3.20 per share. Second quarter net income included special items expenses of $0.02 per share, primarily for certain costs at the Jackson, Alabama mill for paper to containerboard conversion-related activities. The details of the special items for both the second quarter of 2022 and 2021 were included in the schedules that accompanied their earnings press release.
Excluding special items, second quarter 2022 net income was $304 million or $3.23 per share, compared to the second quarter 2021 net income of $207 million or $2.17 per share. Second quarter net sales were $2.2 billion in 2022 and $1.9 billion in 2021. Total company EBITDA for the second quarter, excluding the special items was $533 million in 2022 and $397 million in 2021.
Excluding the special items, a $1.06 per share increase in second quarter of 2022 earnings compared to the second quarter of 2021 was driven primarily by higher prices and mix of $2.04 and volume $0.12 in the Packaging segment and higher prices and mix in the Paper segment of $0.18. Scheduled outage expenses were favorable by $0.08 per share.
Interest expense was lower by $0.03, a lower share count resulting from 2021 repurchases was favorable by $0.03 and other items were favorable $0.03 per share. These items were partially offset by $0.95 of inflation-related operating costs, particularly with energy, fiber, chemicals, operating labor, repair labor and materials and several other indirect and fixed cost areas. Freight and logistics expenses have now moved higher for eight quarters in a row and were $0.25 per share above the second quarter of 2021.
We also had inflation-related increases in our converting costs, which were higher by $0.10 per share and depreciation expense was up $0.08 per share over last year. Volume in our Paper segment was lower by $0.06 per share compared to last year when we were still running uncoated freesheet, our number one machine, at the Jackson, Alabama mill and our tax rate was higher by $0.01 per share.
Results were $0.40 above the second quarter guidance of $2.83 per share primarily due to higher prices and mix in the Packaging segment, lower scheduled outage expenses of $0.07 per share resulting from the postponement of the international falls outage from the second quarter to the third quarter and lower fiber and energy costs resulting from efficiency and usage initiatives. Looking at the Packaging business, EBITDA excluding special items in the second quarter of 2022 of $525 million with sales of $2.1 billion resulted in a margin of 25.4% versus last year's EBITDA of $409 million and sales of $1.7 billion or 23.8% margin. We had great execution of our previously announced price increases and demand in our Packaging segment was solid with corrugated demand about flat with last year's record second quarter, along with demand out of our containerboard mills generating new second quarter production and sales volume records.
Even with record production from our mills, we still ended the quarter with weeks of containerboard inventory supply below our historical levels due to demand needs from both internal and external customers. We will be attempting to build some much needed inventory during the third quarter ahead of the significant fourth quarter outage at the Jackson, Alabama mill for the first phase of the number three machine conversion to virgin linerboard.
We're still experiencing significant inflationary headwinds in our operating costs, as well as freight and logistics expenses. However, our mills and plans continue to do an outstanding job of meeting our customers' needs, while delivering on numerous cost reduction initiatives, efficiency improvements, integration and optimization enhancements and capital project benefits to maximize our returns and margins.
I'll now turn it over to Tom, who will provide further details on the containerboard sales and our corrugating business.