STAMFORD, Conn., June 27 -- International Paper today announced it expects earnings for second quarter 2005 to be lower than current analysts' consensus estimates, as a result of weaker-than- expected paper and industrial packaging volumes sold. The company currently estimates that second-quarter earnings would be approximately $0.25 to $0.30 per share, before special items.
"Our first quarter volume was the strongest in four years, and the pick-up in demand and pricing we experienced in March led us to anticipate some modest improvement in the second quarter. However, sales volumes have been lower than expected in our packaging and printing papers businesses. The lower volumes, coupled with high input costs for energy, chemicals and wood, impacted our margins," said Chairman and Chief Executive Officer John Faraci.
As a result of the lower volumes, the company experienced greater-than- expected lack of order downtime in printing papers and industrial packaging during the second quarter. This is in addition to the previously announced uncoated free sheet capacity closures at its Androscoggin mill in Jay Maine, the Pensacola mill in Cantonment, Fla., and the Bastrop, La., mill, which amounts to 430,000 tons annually.
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