International Paper Q3 Net Earnings Soared to Hit $864 Million

SEATTLE (Scrap Monster): Memphis, Tennessee-based International Paper (IP) reported financial results for third quarter 2021.

The company recorded Q3 net earnings of $864 million or $2.20 per diluted share. This compares with $432 million or $1.09 per diluted share in the prior quarter and $204 million or $0.52 per diluted share in the year-ago quarter. The earnings for the current quarter include a net after-tax gain of $350 million on sale of its Kwidzyn mill in Poland.

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IP’s third quarter adjusted operating earnings of $532 million or $1.35 per diluted share was significantly higher when compared with $280 million or $0.71 per diluted share a year before. The cash provided by operations during the quarter was $645 million. The company reduced its debt by $235 million, thus bringing the year-to-date debt to $1.1 billion, said the results press release.

The company saw its revenue, earnings and margins growing in the quarter, despite significant input cost and supply chain challenges, noted Mark Sutton, Chairman and Chief Executive Officer of IP. It expects strong seasonal demand for corrugated packaging to continue in Q4 this year. The previous price increases would result in additional margin expansion as well, he added.