International Paper Foresees Major Margin Expansion Next Quarter
Rubber and Wood | 2022-04-29 12:39:36
The earnings per share too were up from $0.88 in Q1 2021 to $0.95 in Q1 2022.
By Paul Ploumis
SEATTLE (Scrap Monster): Memphis, Tennessee-headquartered International Paper (IP) reported first quarter 2022 financial results.
The company reported net sales of $5.23 billion during the quarter. This represents a surge by $4.5 billion from the corresponding quarter a year before. The net earnings for Q1 were $360 million, up from $349 million in the same period a year earlier. The adjusted operating earnings increased from $198 million to $288 million over the previous year. The earnings per share too were up from $0.88 in Q1 2021 to $0.95 in Q1 2022.
The sales from industrial packaging segment reached $4.4 billion during the quarter. The global cellulose fibres business registered $710m in sales for the quarter, whereas its corporate and inter-segment sales amounted to $121 million.
Looking ahead into the second quarter, IP expects stable demand at elevated levels. The realisation of prior price movements will begin to outpace higher costs. Also, the company will we step down from its highest maintenance outage quarter of the year. All these will result in major margin expansion, it noted.
Mark Sutton, Chairman and CEO, IP said that the first quarter earnings were better than its outlook. IP generated strong cash from operations and returned $580m to shareowners. The company overcame significantly higher input costs to record a robust performance, both operationally and commercially, Sutton noted.
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