04.30.14
International Paper reported a first quarter 2014 net loss attributable to common shareholders of $95 million ($0.21 per share), including a pre-tax charge of $495 million associated with the Courtland mill shutdown, compared with net earnings of $436 million ($0.98 per share) in the fourth quarter of 2013 and $318 million ($0.71 per share) in the first quarter of 2013.
Quarterly net sales were $7.0 billion compared with $7.2 billion in the fourth quarter of 2013 and $7.1 billion in the first quarter of 2013.
Operating Earnings were $265 million ($0.61 per share) in the first quarter of 2014, compared with $367 million ($0.83 per share) in the fourth quarter of 2013 and $292 million ($0.65 per share) in the first quarter of 2013.
Business segment operating profits before special items in the first quarter of 2014 were $577 million, compared with $666 million in the fourth quarter of 2013 and $571 million in the first quarter of 2013.
“Despite the severe weather that impacted our North American businesses, International Paper delivered solid results,” said John Faraci, chairman and CEO. “North America and Western Europe demand is slowly improving, while emerging market growth has slowed. In this uneven environment, we remain intensely focused on IP initiatives that will allow us to expand margins and continue to generate strong free cash flow in 2014.”
Industrial Packaging posted operating profits of $467 million ($453 million including special items) in the first quarter of 2014, compared to $486 million ($473 million including special items) in the fourth quarter of 2013. In North America, the benefit of higher average selling prices for boxes was offset by the impact of severe weather events and higher energy costs. Scheduled maintenance outage expenses were higher, as planned, than in the prior quarter.
Printing Papers’ operating profits were $85 million (a loss of $410 million including special items) compared to $143 million (a loss of $47 million including special items) in the fourth quarter of 2013. The earnings decline in North America was primarily due to costs and lower volume associated with the Courtland mill closure, as well as the impact of severe weather. This was partially offset by improved pricing and a more favorable mix. In addition, earnings in Brazil decreased due to seasonally lower sales volumes.
Consumer Packaging operating profit was $18 million ($17 million including special items), compared with $32 million ($30 million including special items) in the fourth quarter of 2013. The earnings shortfall in North America was driven primarily by severe weather and related operational issues, along with higher than anticipated input costs, mainly wood and energy. However, industry backlogs in North America continue to remain strong and pricing is improving across most product lines.
xpedx, the company’s North American distribution business, reported operating profits of $7 million ($5 million including special items) compared with $5 million (a loss of $397 million including special items) in the fourth quarter of 2013. Slightly improved margins, lower spending and lower overhead costs more than offset weaker sales.
Quarterly net sales were $7.0 billion compared with $7.2 billion in the fourth quarter of 2013 and $7.1 billion in the first quarter of 2013.
Operating Earnings were $265 million ($0.61 per share) in the first quarter of 2014, compared with $367 million ($0.83 per share) in the fourth quarter of 2013 and $292 million ($0.65 per share) in the first quarter of 2013.
Business segment operating profits before special items in the first quarter of 2014 were $577 million, compared with $666 million in the fourth quarter of 2013 and $571 million in the first quarter of 2013.
“Despite the severe weather that impacted our North American businesses, International Paper delivered solid results,” said John Faraci, chairman and CEO. “North America and Western Europe demand is slowly improving, while emerging market growth has slowed. In this uneven environment, we remain intensely focused on IP initiatives that will allow us to expand margins and continue to generate strong free cash flow in 2014.”
Industrial Packaging posted operating profits of $467 million ($453 million including special items) in the first quarter of 2014, compared to $486 million ($473 million including special items) in the fourth quarter of 2013. In North America, the benefit of higher average selling prices for boxes was offset by the impact of severe weather events and higher energy costs. Scheduled maintenance outage expenses were higher, as planned, than in the prior quarter.
Printing Papers’ operating profits were $85 million (a loss of $410 million including special items) compared to $143 million (a loss of $47 million including special items) in the fourth quarter of 2013. The earnings decline in North America was primarily due to costs and lower volume associated with the Courtland mill closure, as well as the impact of severe weather. This was partially offset by improved pricing and a more favorable mix. In addition, earnings in Brazil decreased due to seasonally lower sales volumes.
Consumer Packaging operating profit was $18 million ($17 million including special items), compared with $32 million ($30 million including special items) in the fourth quarter of 2013. The earnings shortfall in North America was driven primarily by severe weather and related operational issues, along with higher than anticipated input costs, mainly wood and energy. However, industry backlogs in North America continue to remain strong and pricing is improving across most product lines.
xpedx, the company’s North American distribution business, reported operating profits of $7 million ($5 million including special items) compared with $5 million (a loss of $397 million including special items) in the fourth quarter of 2013. Slightly improved margins, lower spending and lower overhead costs more than offset weaker sales.