IP Foresees Robust Demand and Margin Expansion in Q3

SEATTLE (Scrap Monster): International Paper (IP) posted solid financial results for second quarter this year. The company expects demand to remain strong and margins to expand significantly during the upcoming quarter.

According to company press release, it reported net sales of $5.616 billion during the quarter, substantially higher from $4.866 billion in the corresponding quarter a year before. The quarterly business segment operating profit was up from $428 million in Q2 2020 to $494 million. The cash provided by operations totalled $766 million in Q2 2021, whereas it totalled $1.3 billion during the year-to-date period.

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The company reported second quarter adjusted operating earnings of $421 million or $1.06 per diluted share. This compares with $305 million or $0.77 per diluted share in the second quarter of 2020.

Commenting on the results, Mark Sutton, Chairman and Chief Executive Officer stated that the company delivered solid earnings growth and cash generation during the quarter. The company achieved strong revenue growth in the midst of a challenging supply chain and input cost environment. The company continued to make excellent progress on spin-off of its paper business, which is expected to be completed by early-October this year, he added.