International Paper Swings to Loss

Dow Jones
07/30
 
 

International Paper swung to a loss in the latest quarter as sales in North America fell.

The Memphis producer of container board for cardboard boxes and other packaging recorded a second-quarter loss of $12 million, or 2 cents a share, against year-earlier earnings of $75 million, or 14 cents.

Excluding certain items, earnings before interest, taxes, depreciation and amortization fell to $587 million from $670 million.

Net sales for the period slipped to $6 billion from last year's $6.14 billion, falling short of the $6.2 billion analysts expected.

North American packaging solutions sales fell 4.5% to $3.69 billion, while packaging sales in Europe, the Middle East and Africa inched down 0.2% to $2.29 billion.

For the third quarter, International Paper forecast adjusted Ebitda of between $780 million and $830 million, including an $85 million hit from the temporary closure of its Pine Hill mill in Alabama. Full-year adjusted Ebitda is projected to be in a $3.2 billion to $3.4 billion range, where analysts have penciled in earnings of about $3.24 billion.

Chairman and Chief Executive Andy Silvernail said the company improved mill performance in North America in the recent quarter and successfully completed the Riverdale machine conversion, while continuing to grow box volumes.

In the EMEA region, International Paper accelerated cost cutting, advanced investments and continued preparing for the separation of the business, Silvernail said.

 
 

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