International Paper Records Robust Q1 2018 Earnings, Dismay Over Smurfit Kappa Deal

SEATTLE (Scrap Monster):  Memphis, Tennessee- headquartered International Paper has reported strong results for the first quarter of 2018. At the same time, the company expressed disappointment with the progress made on acquisition of Smurfit Kappa assets.

The company reported net earnings of $1.74 per diluted share during the first quarter of 2018, significantly higher when compared with the net earnings of $0.50 per diluted share during the corresponding quarter in 2017. The adjusted operating earnings in Q1 2018 increased from $232 million in the first quarter of 2017 to $395 million in Q1 this year. The quarterly net sales were up from $5.1 billion to $5.6 billion year-on-year. The business segment operating profits totaled $512 million in the first quarter of 2018.

ALSO READ: International Paper Disagrees With Smurfit Kappa's Rejection of Takeover Bid

Mark Sutton, Chairman and Chief Executive Officer noted that the company delivered solid first quarter performance, mainly aided by healthy global demand and solid fundamentals across its global business. The company reported strong operational performance in the midst of weather-related disruptions and various distribution challenges.

The price realization momentum continued across all the three primary business segments. Seasonally lower sales volume, weather-related disruptions and maintenance outage costs dragged the operating profits of Industrial Packaging sector down to $437 million. The operating profits from Global Cellulose Fibers segment during the first quarter of 2018 totaled $11 million. The Printing Papers segment reported sequential decline in quarterly operating profits. The operating profits more than halved from $136 million in Q4 ’17 to $64 million in the first quarter of 2018.

International Paper noted that its Ilim joint venture in Russia delivered record equity earnings during the quarter. The company is confident in its outlook of strong earnings growth in 2018, the press release said.