10.28.22
International Paper reported third quarter 2022 financial results.
Net sales in 3Q 2022 were $5.402 billion, up slightly from $5.389 billion in 2Q 2022 and up from $4.914 billion in 3Q 2021. Free cash flow was $197 million in 3Q 2022, down slightly from $204 million in 2Q 2022 and down from $519 million in 3Q 2021. Ten percent year-over-year revenue growth was based on strong price realization.
Third quarter net earnings (loss) attributable to International Paper was $951 million ($2.64 per diluted share) compared with $511 million ($1.38 per diluted share) in the second quarter of 2022 and $864 million ($2.20 per diluted share) in the third quarter of 2021.
Third quarter 2022 net earnings include a net after-tax benefit of $563 million ($1.56 per diluted share) related to the settlement of the previously announced timber monetization restructuring tax matter. Third quarter 2021 net earnings include a net after-tax gain of $350 million ($0.89 per diluted share) on the sale of our Kwidzyn, Poland mill.
Cash provided by operations was $435 million, bringing year-to-date to $1.4 billion.
"Our third quarter earnings were significantly impacted by the challenging macro environment," said Mark Sutton, chairman and CEO. "Lower consumer spending for goods and retail inventory destocking drove lower demand for packaging, and we also experienced significantly higher energy and distribution costs. As we enter the fourth quarter, we see packaging demand stabilizing at these lower levels and input costs providing some relief; however, we also expect seasonally higher operating costs. And for the year, we expect to exceed our $225 million target related to our Building a Better IP initiatives.
“Looking ahead, while there is considerable geopolitical and macroeconomic uncertainty ahead of us, I am confident in our ability to navigate through various environments,” added Sutton. “We have a great team and a large system of mills and box plants that enables us to take care of our customers while optimizing our operations to reduce high marginal costs. We will also continue to invest in attractive cost reduction projects and accelerate our improvement initiatives to create value."
Net sales in 3Q 2022 were $5.402 billion, up slightly from $5.389 billion in 2Q 2022 and up from $4.914 billion in 3Q 2021. Free cash flow was $197 million in 3Q 2022, down slightly from $204 million in 2Q 2022 and down from $519 million in 3Q 2021. Ten percent year-over-year revenue growth was based on strong price realization.
Third quarter net earnings (loss) attributable to International Paper was $951 million ($2.64 per diluted share) compared with $511 million ($1.38 per diluted share) in the second quarter of 2022 and $864 million ($2.20 per diluted share) in the third quarter of 2021.
Third quarter 2022 net earnings include a net after-tax benefit of $563 million ($1.56 per diluted share) related to the settlement of the previously announced timber monetization restructuring tax matter. Third quarter 2021 net earnings include a net after-tax gain of $350 million ($0.89 per diluted share) on the sale of our Kwidzyn, Poland mill.
Cash provided by operations was $435 million, bringing year-to-date to $1.4 billion.
"Our third quarter earnings were significantly impacted by the challenging macro environment," said Mark Sutton, chairman and CEO. "Lower consumer spending for goods and retail inventory destocking drove lower demand for packaging, and we also experienced significantly higher energy and distribution costs. As we enter the fourth quarter, we see packaging demand stabilizing at these lower levels and input costs providing some relief; however, we also expect seasonally higher operating costs. And for the year, we expect to exceed our $225 million target related to our Building a Better IP initiatives.
“Looking ahead, while there is considerable geopolitical and macroeconomic uncertainty ahead of us, I am confident in our ability to navigate through various environments,” added Sutton. “We have a great team and a large system of mills and box plants that enables us to take care of our customers while optimizing our operations to reduce high marginal costs. We will also continue to invest in attractive cost reduction projects and accelerate our improvement initiatives to create value."