International Paper Swings to Profit
International Paper
(IP) - Get Report
swung to a profit in its fourth quarter as higher prices for lumber, plywood and pulp helped offset a restructuring charge.
The company earned $48 million, or 11 cents a share, on revenue of $6.5 billion in the quarter, compared with a loss of $130 million, or 27 cents a share, on revenue of $6.3 billion a year ago. Both periods included one-time charges, including a $61 million restructuring charge and a $26 million asset writedown in the current quarter.
Excluding the items, International Paper earned $110 million, or 23 cents a share, in the latest quarter compared with $160 million, or 33 cents a share, last year. On that basis, analysts surveyed by Thomson One Analytics were expecting earnings of 18 cents a share on sales of $6.3 billion in the latest quarter.
Earnings in the most recent quarter were squeezed by higher raw material costs, lower prices and weaker volume. Among segments, fourth-quarter operating earnings in its printing papers division fell to $66 million from $120 million in the third quarter, as pulp volume and average prices were up, but volume for uncoated free sheet fell and average prices were lower.
Industrial and consumer packaging operating profit was $100 million in the fourth quarter, compared with $107 million in the third quarter, as lower prices were partially offset by higher volume in containerboard and bleached board.