Memphis, TN 38197
Phone: (800) 207-4003
Sales: $21.1 billion overall; $50 million in ink sales (Ink World estimate).
Key Personnel: Mark S. Sutton, chairman and CEO; W. Michael Amick Jr., SVP, Paper the Americas; C. Cato Ealy, SVP, corporate development; Gregory T. Wanta, SVP, North American Container; Tommy S. Joseph, SVP, manufacturing, technology, EH&S and global sourcing; Timothy S. Nicholls, SVP, Industrial Packaging the Americas; Catherine I. Slater, SVP, Consumer Packaging; Glenn Landau, SVP and CFO.
Number of Employees: 55,000 overall in more than 24 countries.
Major Products: Flexographic and specialty inks and graphic arts coatings.
Comments: International Paper is a global leader in the areas of industrial and consumer packaging and uncoated papers and pulp. With sales of $21.1 billion in 2015, International Paper is a major force in packaging, with 65% of its 2015 sales in the industrial packaging market, including containerboard and corrugated packaging. An additional 13% of its 2015 revenue came in consumer packaging, including pharmaceuticals and foodservice products.
International Paper had a solid year in 2016, although net sales declined 4% from $22 billion in 2015, primarily due to sales of three businesses. International Paper reported adjusted operating earnings of $1.4 billion, while its full-year 2015 net earnings was $904 million ($2.18 per share), pretty much on par with 2015’s results.
International Paper reported that cash provided by operations was $2.5 billion for the full-year 2016 and $912 million in the fourth quarter of 2016. Free cash flow (non-GAAP) was $1.9 billion for the full-year 2016 and $467 million in the fourth quarter of 2016, according to the company.
“I’m pleased with another year of strong cash generation and returns solidly above the cost of capital,” said Mark Sutton, chairman and CEO. “While we experienced margin pressure in 2016, we enter the new year with an improving economic climate and several catalysts which we expect to improve profitability across International Paper.”
Optihue Graphics, Plates and Inks, a subsidiary of International Paper located in Kenton, OH, produces the flexo and specialty inks and graphic arts coatings that International Paper uses for its packaging operations.
In a major purchase, International Paper entered into a definitive agreement to purchase Weyerhaeuser’s pulp business for $2.2 billion on May 2, 2016. The acquisition was completed on Dec. 1. Weyerhaeuser’s pulp business has approximately 1,900 employees in the US.
“This transaction will position us as the premier global supplier of fluff pulp and will enhance our ability to generate additional free cash flow,” Sutton noted.