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Paper Recycling October 26, 2017 01:30:51 PM

International Paper Q3 Profit Surged 18 pc; Beats All Estimates

Paul Ploumis
ScrapMonster Author
Operating profit from Industrial Packaging segment reported strong growth in Q3 2017. Overall market conditions remained healthy in North America.
International Paper Q3 Profit Surged 18 pc; Beats All Estimates

SEATTLE (Scrap Monster): Memphis, Tennessee-headquartered International Paper has reported significant surge in profits during the third quarter of the year, mainly on the back of falling costs and improved performance from the pulp segment. The quarterly result published yesterday shows that earnings surged higher by 18% over the previous year, whereas revenue for the quarter grew by 12%.

International Paper reported net earnings of $395 million during Q3 this year when compared with $312 million during the comparable quarter in 2016. The earnings have jumped significantly higher from $80 during the second quarter of 2017. The quarterly sales totaled $5.9 billion in Q3 2017, as compared with $5.3 billion in Q3 2016. Sales reported marginal jump from $5.8 billion in second quarter of 2017.

Mark Sutton, Chairman and Chief Executive Officer stated that the solid quarterly performance was mainly driven by price realization across key business segments and lower costs. He stressed that the strong Q3 performance is despite the impacts caused by two hurricanes and historically high prices of recycled fiber. He expected that the demand across the Industrial Packaging and Global Cellulose Fibers businesses are likely to remain robust through the rest of 2017. As a result, International Paper hopes to achieve its targeted earnings growth for the full year 2017, Sutton added.

Operating profit from Industrial Packaging segment reported strong growth in Q3 2017. Overall market conditions remained healthy in North America. Higher recycled fiber prices partially offset the gains due to lower maintenance outage cots. EMEA sales volume remained lower. The company reported improved results in Brazil, aided by higher prices and huge growth in sales volume.

The operating profits from other segments including Global Cellulose Fibers, Printing Papers and Consumer Packaging recorded notable growth during the quarter. The earnings in Europe and Russia improved on account of increased sales and lower maintenance outage expenses. The North American earnings too improved during Q3 2017. The pulp business, acquired by the company in 2016, contributed significantly to the year-on-year revenue increase.

International Paper is a leading producer of renewable fiber-based packaging, pulp and paper products with manufacturing facilities in North America, Latin America, Europe, North Africa and Russia.

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