USA – American pulp and paper company International Paper has reported net sales of US$4.62 billion, a slight increase from US$4.60 billion in the fourth quarter of 2023 but below the US$5.02 billion registered in the first quarter of 2023.
The company’s net earnings for the first quarter of 2024 stood at US$56 million, marking a substantial recovery from a loss of US$284 million in the fourth quarter of 2023.
This improvement contrasts with the US$172 million net earnings in the previous year’s first quarter.
This recovery is notable, reflecting the company’s resilience in navigating operational challenges, including a January freeze and a significant fire at its Ixtac facility in Mexico, which together negatively impacted the quarter by approximately US$52 million pre-tax.
Mark Sutton, Chairman and CEO of International Paper, emphasized the strategic progress made during the quarter, noting the benefits of business strategies and mill system optimization.
Despite the challenges of elevated costs and seasonally lower volumes, he expressed optimism about improving market trends, instilling confidence in the company’s future.
Looking forward, Sutton expressed confidence in the leadership transition set for May 1, when Andy Silvernail will assume the CEO role.
Sutton, who is retiring after a 40-year tenure with the company, praised Silvernail’s exceptional leadership capabilities and the expertise of the senior leadership team, which have facilitated a positive outlook for the company’s future under their guidance.
In its industrial packaging segment, International Paper reported operating profits of US$216 million in the first quarter, down from US$315 million in the previous quarter.
The decrease was due to seasonally lower volumes, higher planned outage costs, and increased input costs, particularly for recovered fiber. However, higher sales prices for boxes and containerboard in North America, driven by commercial efforts, offset some losses.
The company’s global cellulose fibers segment saw operating losses narrow to US$(47) million from US$(58) million in the previous quarter, thanks to higher pulp pricing, improved product mix, and lower outage costs.
Despite these gains, higher operating costs remained a challenge. Regional demand for absorbent fluff products showed signs of improvement in mature economies, while remaining stable in developing regions.
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