International Paper Q4 2013 Revenue Up

International Paper reported full-year 2013 net earnings attributable to common shareholders totaling $1.4 billion ($3.11 per share) compared with $794 million ($1.80 per share) in full-year 2012. In the fourth quarter of 2013, the company reported net earnings of $436 million ($0.98 per share) compared with $235 million ($0.53 per share) in the fourth quarter of 2012.

Full-year 2013 operating earnings were $1.4 billion ($3.16 per share) compared with $1.2 billion ($2.65 per share) in 2012. Operating earnings in the fourth quarter of 2013 totaled $367 million ($0.83 per share) compared with $305 million ($0.69 per share) in the fourth quarter of 2012.

Annual sales totaled $29.1 billion in 2013 compared with $27.8 billion in 2012. Quarterly net sales were $7.2 billion in the fourth quarter compared with $7.1 billion in the fourth quarter of 2012.

Full-year 2013 business segment operating profits were $1.8 billion compared with $2.0 billion in 2012.  Business segment operating profits in the fourth quarter were $59 million compared with $528 million in 2012, both of which included special items.

“International Paper delivered record operating earnings and cash from operations in 2013, largely driven by margin expansion across key businesses,” said John Faraci, chairman and CEO. “In 2014, our businesses are well positioned to achieve another meaningful increase in EBITDA and free cash flow.”

Industrial Packaging operating profits in the fourth quarter of 2013 were $486 million ($473 million including special items) compared with $517 million ($499 million including special items) in the third quarter of 2013. Box sales volumes improved relative to the market, however two less shipping days for the quarter and seasonally lower demand led to lower volumes. Profits for the segment benefited from the complete realization of the 2013 containerboard price increase.

Printing Papers operating profits were $143 million (a loss of $47 million after special items) in the fourth quarter of 2013 versus $144 million ($93 millionincluding special items) in the third quarter of 2013. North America experienced fixed cost penalties and lower sales volumes resulting from Courtland’s partial shutdown in the quarter, partly offset by lower maintenance outages and improved sales price/mix. Brazil’s results improved largely driven by higher volume and better mix from seasonally stronger demand.  Europe was negatively impacted by higher outages, while India improved with stronger prices and volume, along with no maintenance outages in fourth quarter of 2013.

Consumer Packaging operating profits were $32 million ($30 million including special items) in the fourth quarter of 2013 compared with $73 million (before and after special items) in the third quarter of 2013. Significant planned maintenance outage expenses and lower volume more than offset the impact of improved pricing.

xpedx, the company’s North American distribution business, reported operating profits of $5 million (a loss of $397 million including special items) in the fourth quarter of 2013 as lower demand impacted results, compared with $19 million ($13 million including special items) in the third quarter of 2013.