10.28.21
International Paper reported third quarter 2021 financial results.
Net sales were $5,714 million in 3Q 2021, up from $5,616 million in 2Q 2021 and $5,123 million in 3Q 2020. Third quarter net earnings attributable to International Paper was $864 million ($2.20 per diluted share), compared with $432 million ($1.09 per diluted share) in the second quarter of 2021 and $204 million ($0.52 per diluted share) in the third quarter of 2020. Third quarter 2021 net earnings include a net after-tax gain of $350 million ($0.89 per diluted share) on the sale of the Kwidzyn, Poland mill.
Third quarter 2021 cash provided by operations was $645 million and year-to-date was $1.9 billion compared with $2.3 billion year-to-date in the same period of 2020. Third quarter 2021 cash generation also includes pre-tax sources of $737 million (net of cash divested) related to the sale of the Kwidzyn, Poland mill and $630 million related to the unwind of timber monetization notes.
Debt reduction was $235 million, bringing year-to-date to $1.1 billion.
"In the third quarter, International Paper grew revenue, earnings and margins despite significant input cost and supply chain challenges, and continued to generate strong cash from operations," said Mark Sutton, chairman and CEO. "Widespread supply chain constraints impacted our ability to capture the full opportunity that comes with the strong level of demand we're seeing. Input costs also rose far more than we anticipated and we expect this inflationary environment to continue for the foreseeable future.
“Looking ahead, we expect strong seasonal demand for corrugated packaging in the fourth quarter, with additional margin expansion from previous price increases," Sutton added.
Net sales were $5,714 million in 3Q 2021, up from $5,616 million in 2Q 2021 and $5,123 million in 3Q 2020. Third quarter net earnings attributable to International Paper was $864 million ($2.20 per diluted share), compared with $432 million ($1.09 per diluted share) in the second quarter of 2021 and $204 million ($0.52 per diluted share) in the third quarter of 2020. Third quarter 2021 net earnings include a net after-tax gain of $350 million ($0.89 per diluted share) on the sale of the Kwidzyn, Poland mill.
Third quarter 2021 cash provided by operations was $645 million and year-to-date was $1.9 billion compared with $2.3 billion year-to-date in the same period of 2020. Third quarter 2021 cash generation also includes pre-tax sources of $737 million (net of cash divested) related to the sale of the Kwidzyn, Poland mill and $630 million related to the unwind of timber monetization notes.
Debt reduction was $235 million, bringing year-to-date to $1.1 billion.
"In the third quarter, International Paper grew revenue, earnings and margins despite significant input cost and supply chain challenges, and continued to generate strong cash from operations," said Mark Sutton, chairman and CEO. "Widespread supply chain constraints impacted our ability to capture the full opportunity that comes with the strong level of demand we're seeing. Input costs also rose far more than we anticipated and we expect this inflationary environment to continue for the foreseeable future.
“Looking ahead, we expect strong seasonal demand for corrugated packaging in the fourth quarter, with additional margin expansion from previous price increases," Sutton added.
