01.31.20
International Paper reported its fourth quarter and full year results for 2019. Net sales were $22.376 billion in 2019, down slightly from $23.306 billion in 2018. Full year cash flow was $2.599 billion, up substantially from $1.654 billion in 2018.
Full-year and fourth quarter net earnings attributable to International Paper were $1.2 billion ($3.07 per diluted share) and $165 million ($0.42 per diluted share), respectively, compared with $2 billion ($4.85 per diluted share) for full-year 2018, $344 million ($0.87 per diluted share) in the third quarter of 2019 and $316 million ($0.78 per diluted share) in the fourth quarter of 2018.
Full-year and fourth quarter adjusted operating earnings (non-GAAP) was $1.8 billion ($4.43 per diluted share) and $430 million ($1.09 per diluted share), respectively, compared with $2.2 billion ($5.32 per diluted share) for full-year 2018, $431 million ($1.09 per diluted share) in the third quarter of 2019 and $670 million ($1.65 per diluted share) in the fourth quarter of 2018.
Fourth quarter cash provided by operations was $928 million, bringing full-year 2019 to $3.6 billion compared with $3.2 billion for full-year 2018. Fourth quarter debt reduction was $582 million, bringing full-year 2019 to $973 million. International Paper returned $1.3 billion to shareholders in 2019 through dividends of $796 million and share repurchases of $485 million.
"International Paper delivered solid earnings and outstanding cash generation in the fourth quarter and full-year 2019," said Mark Sutton, chairman and CEO. "We again demonstrated our flexibility to navigate through challenging market conditions by optimizing our full value chain. In 2019, we returned $1.3 billion to shareholders and reduced debt by $1 billion, while continuing to strengthen our packaging business through targeted investments. We are delivering commercial wins and will continue to tightly manage costs, capital spending and working capital to generate strong cash flows in 2020, despite earnings headwinds. Additionally, we will continue to make choices consistent with our capital allocation framework to drive long-term value creation."
Full-year and fourth quarter net earnings attributable to International Paper were $1.2 billion ($3.07 per diluted share) and $165 million ($0.42 per diluted share), respectively, compared with $2 billion ($4.85 per diluted share) for full-year 2018, $344 million ($0.87 per diluted share) in the third quarter of 2019 and $316 million ($0.78 per diluted share) in the fourth quarter of 2018.
Full-year and fourth quarter adjusted operating earnings (non-GAAP) was $1.8 billion ($4.43 per diluted share) and $430 million ($1.09 per diluted share), respectively, compared with $2.2 billion ($5.32 per diluted share) for full-year 2018, $431 million ($1.09 per diluted share) in the third quarter of 2019 and $670 million ($1.65 per diluted share) in the fourth quarter of 2018.
Fourth quarter cash provided by operations was $928 million, bringing full-year 2019 to $3.6 billion compared with $3.2 billion for full-year 2018. Fourth quarter debt reduction was $582 million, bringing full-year 2019 to $973 million. International Paper returned $1.3 billion to shareholders in 2019 through dividends of $796 million and share repurchases of $485 million.
"International Paper delivered solid earnings and outstanding cash generation in the fourth quarter and full-year 2019," said Mark Sutton, chairman and CEO. "We again demonstrated our flexibility to navigate through challenging market conditions by optimizing our full value chain. In 2019, we returned $1.3 billion to shareholders and reduced debt by $1 billion, while continuing to strengthen our packaging business through targeted investments. We are delivering commercial wins and will continue to tightly manage costs, capital spending and working capital to generate strong cash flows in 2020, despite earnings headwinds. Additionally, we will continue to make choices consistent with our capital allocation framework to drive long-term value creation."