Log In | Become a Member | Contact Us


Leading printing executives into the future

Connect on Twitter | Facebook | LinkedIn

Featured:     European Coverage     Production Inkjet Analysis

International Paper Sees Profit and Revenue Decline in Q2

Wednesday, July 30, 2014

Press release from the issuing company

MEMPHIS, Tenn. - International Paper today reported second quarter 2014 net earnings attributable to common shareholders totaling $161 million ($0.37 per share) compared with a net loss of $95 million($0.21 per share) in the first quarter of 2014, which included a pre-tax charge of $495 million associated with the Courtland mill shutdown, and net earnings of $259 million ($0.57 per share) in the second quarter of 2013. Amounts in all periods include the impact of special items, non-operating pension expense and discontinued operations.

SEGMENT INFORMATION
The performance of the company's business segments are measured quarter to quarter without variations caused by special items, as management focuses on business segment operating profits excluding those items. Second quarter 2014 business segment operating profits and business trends compared with the prior quarter are as follows:

Industrial Packaging operating profits in the second quarter of 2014 were $534 million ($537 million including special items) compared with $467 million ($453 million including special items) in the first quarter of 2014. North America's improved performance (partly reflecting recovery from first quarter weather-related issues and costs) was driven by increased packaging volume, lower operating costs and lower input costs. Results were partly offset by increased planned maintenance outage costs. In Brazil, earnings improved due to higher packaging volume and box prices.

Printing Papers operating profits were $118 million ($69 million including special items) in the second quarter of 2014 versus $85 million (a loss of $410 million including special items) in the first quarter of 2014. The earnings increase in North America was primarily driven by better pricing and mix, lower closure costs at the Courtland Mill, improved operating costs (including the recovery from the weather-related costs in the first quarter), and lower input costs. This was partially offset by higher maintenance outage spending and lower volume. Operating profits in Brazil improved primarily due to increased sales prices and mix. In Europe, higher planned maintenance outage costs negatively impacted earnings.

Consumer Packaging operating profits were $34 million ($33 million including special items) in the second quarter of 2014 compared with $18 million ($17 million including special items) in the first quarter of 2014. Price improvement and favorable operations (including the recovery from the unfavorable weather conditions in the first quarter) were key factors in the improved results.

xpedx, the company's North American distribution business, reported operating profits of $11 million ($12 million including special items) in the second quarter of 2014 compared with $7 million ($5 million including special items) in the first quarter of 2014. The xpedx spin-off was completed July 1, 2014. xpedx merged with Unisource Worldwide, Inc., and the combined companies are now Veritiv Corporation.

International Paper recorded Ilim joint venture equity earnings of $43 million compared with an equity loss of $31 million in the first quarter of 2014. With respect to Ilim's U.S. dollar denominated debt, the company recognized a non-cash after-tax foreign exchange gain of $29 million in the second quarter of 2014, compared with an after-tax loss of $45 million in the first quarter of 2014, largely due to foreign exchange movement in the U.S. dollar versus the Russian ruble.  Operational earnings were flat quarter over quarter, as stronger mill performance was offset by lower pulp prices and seasonally higher fiber costs.

Net corporate expenses, excluding non-operating pension expense, for the 2014 second quarter were $0 million compared with $9 million in the first quarter of 2014. 

Full Release

 

Post a Comment

To post a comment Log In or Become a Member, doing so is simple and free

 

SHARE

Email Icon Email

Print Icon Print

Become a Member

Join the thousands of printing executives who are already part of the WhatTheyThink Community.

Copyright © 2016 WhatTheyThink. All Rights Reserved