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International Paper Reports Fourth Quarter and Full Year 2016 Earnings

Thursday, February 02, 2017

Press release from the issuing company

 

MEMPHIS, Tenn. - International Paper (NYSE: IP) today reported full-year 2016 net earnings attributable to International Paper of $904 million ($2.18 per share) compared with net earnings of $938 million ($2.23 per share) for full-year 2015. In the fourth quarter of 2016, the Company reported net earnings of $218 million ($0.53 per share) compared with $178 million ($0.43 per share) in the fourth quarter of 2015. Net earnings in all periods include the impact of special items, if any, non-operating pension expense and discontinued operations. 

Diluted Net EPS Attributable to International Paper Shareholders and Adjusted Operating EPS

   

Fourth 
Quarter 
2016

 

Fourth 
Quarter 
2015

 

Full-
Year 
2016

 

Full-
Year 
2015

Net Earnings

 

$

0.53

   

$

0.43

   

$

2.18

   

$

2.23

 

Less – Discontinued Operations (Gain) Loss

 

   

   

0.01

   

 

Net Earnings (Loss) from Continuing Operations

 

0.53

   

0.43

   

2.19

   

2.23

 

Add Back – Non-Operating Pension Expense

 

0.05

   

0.35

   

0.90

   

1.04

 

Add Back – Net Special Items Expense (Income)

 

0.15

   

0.09

   

0.26

   

0.38

 

Adjusted Operating Earnings*

 

$

0.73

   

$

0.87

   

$

3.35

   

$

3.65

 

 

* Adjusted operating earnings (Non-GAAP) is defined as net earnings from continuing operations attributable to International Paper Company (GAAP) excluding special items and non-operating pension expense.  Non-operating pension expense for the full year 2016 included a pre-tax charge of $439 million ($270 million after taxes or $0.65 per share) for a settlement accounting charge associated with payments under the previously announced term-vested lump sum buyout.

Full-year 2016 adjusted operating earnings were $1.4 billion ($3.35 per share) compared with $1.5 billion ($3.65 per share) in 2015.  Adjusted operating earnings in the fourth quarter of 2016 totaled $303 million ($0.73 per share) compared with $361 million ($0.87 per share) in the fourth quarter of 2015.

Annual net sales totaled $21.1 billion in 2016 compared with $22.4 billion in 2015. The year-over-year revenue decline was primarily due to the sale of the IP-Sun joint venture and the Asian Corrugated Packaging business, as well as the sale of the Carolina® Coated Bristols business.  Quarterly net sales were $5.4 billion in the fourth quarter of 2016 compared with $5.4 billion in the fourth quarter of 2015. 

Full-year 2016 business segment operating profits were $2.2 billion compared with $2.4 billion in 2015. Business segment operating profits in the fourth quarter of 2016 were $464 million, compared with $483 million in the fourth quarter of 2015.

Cash provided by operations was $2.5 billion for the full-year 2016 and $912 million in the fourth quarter of 2016.  Free cash flow (non-GAAP) was $1.9 billion for the full-year 2016 and $467 million in the fourth quarter of 2016.    

"I'm pleased with another year of strong cash generation and returns solidly above the cost of capital," said Mark Sutton, Chairman and Chief Executive Officer. "While we experienced margin pressure in 2016, we enter the new year with an improving economic climate and several catalysts which we expect to improve profitability across International Paper. We are focused on serving our customers, strong operations and margin improvement, along with integrating the newly acquired pulp business and driving synergies.  We remain confident in our ability to create shareholder value through thoughtful capital allocation with a near-term focus on debt reduction."

Full Release

 

 

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