International Paper Reports 3Q 2024 Results

International Paper reported third quarter 2024 financial results.

Net sales were $4,686 million, up from $4,613 million in 3Q 2023. Net earnings were $150 million, down from $165 million in 3Q 2023, while free cash flow was $309 million, up from $240 million.

“Our third quarter earnings are above our outlook,” said chairman and CEO Andy Silvernail. ”Higher prices across the portfolio, including benefits from our packaging go-to-market strategy were supported by a moderately improving box demand environment. We also had higher operating costs and lower volumes due to seasonality and commercial actions to improve profitability.

“We are deploying an 80/20 approach to strategically align resources to become excellent with our customers, while reducing complexity and cost across the company,” added Silvernail. ”This includes organizational restructuring and corporate cost reductions, as well as investments to strengthen our most competitive and strategic assets, paired with facility closures to structurally reduce operating costs. In addition, we are exploring strategic options for our Global Cellulose Fibers business.

“As we look forward to the combination with DS Smith, we expect the transaction will close early in the first quarter of 2025,” he concluded. ”Overall, I’m confident that our transformational journey will unlock substantial value at IP and strengthen the company for our employees, customers and shareholders.”

Industrial Packaging business segment operating profit in the third quarter of 2024 was $197 million compared with $291 million in the second quarter of 2024. In North America, business segment operating profit decreased as higher sales prices for boxes and containerboard were more than offset by seasonally lower sales volumes, higher operating costs and higher planned outage costs. Sales volumes were also impacted by one less shipping day in the third quarter of 2024.

Operating costs were negatively impacted by lower volumes, reliability incidents and spending, seasonally higher labor and employee benefit costs. Input costs were higher, driven by higher energy and wood costs.

Global Cellulose Fibers business segment operating profit in the third quarter of 2024 was $40 million compared with $31 million in the second quarter of 2024. The improvement of business segment operating profit reflected higher average sales prices for both fluff and paper and tissue grade pulp and lower planned outage costs.