NEW YORK (TheStreet) -- International Paper (IP) - Get Report reported an earnings beat on Wednesday, but missed on revenue. The Tennessee-based company manufactures materials for consumer and industrial packaging and saw particularly strong results in North America during the second quarter.
The company posted profits of 97 cents a share on revenue of $5.7 billion, beating analysts' earnings estimates of 92 cents per share but coming up short of Wall Street's revenue estimates of $5.8 billion.
Shares of International Paper have dropped 9% since the start of the year, with the stock down around 3.5% over the past 12 months.
The company spun off its distribution branch Xpedx at the beginning of July to focus on its core business. Xpedx will merge with Unisource Worldwide, forming a new distribution business called Veritiv. International Paper will retain a 51% stake in the new platform.
Industrial packaging was a bright spot in the earnings report, despite being offset by maintenance costs. International Paper remains the market leader in the U.S. for cardboard and paper products, despite the drop in sales across all major segments and heavy dollar headwinds. Consumer packaging sales were down 5.5%, slumping to $797 million. Sales of printing papers were down 12.1% from last year to $1.2 million.
"Our North American Industrial Packaging business performed very well on seasonally higher sales and increased margins. Operations around the globe ran well and we executed our heaviest quarter of maintenance outages safely and effectively. As we look forward, we are confident in our ability to continue to deliver strong results and remain focused on long term value creation for our shareholders," said CEO Mark Sutton, in a statement.