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International Paper's Quarterly Profit Off 3%
International Paper Co.'s third-quarter net earnings dipped 3% as flat volumes and higher costs for raw materials offset improved selling prices, the company reported Friday.
For the latest quarter, the Memphis, Tenn.-based paper and packaging company (IP) said preliminary net earnings were $217 million, or 51 cents a share, compared to $224 million, or 46 cents, earned a year ago. The number of shares in the recent quarter was about 12% below that of last year.
Revenue increased 2% to $5.54 billion.
International Paper said earnings from continuing operations were 52 cents a share, including 6 cents in one-time charges and a penny in one-time gains.
Excluding the special items, earnings were 57 cents a share, in line with the average profit estimate of analysts surveyed by Thomson Financial.
"The overall quality of the result looks good, in our view, and we were particularly encouraged by a standout operational quarter in the company's white paper business," J.P. Morgan analyst Claudia Shank said in a note.
Shares of International Paper were down 1.4% recently to $35.56. Over the last year, the stock's traded in a range of $41.57 to $31.05.
"Volumes were flat quarter-to-quarter, but we saw overall price improvement, which more than offset some increases in raw-material and distribution costs," Chief Executive John Faraci said in a release.
Last month the company warned that disappointing land sales would push third- quarter earnings below Wall Street targets, which averaged 63 cents a share at the time. .
International Paper has been in the midst of a strategic overhaul, selling its North American land holdings to invest in operations in Europe, Latin American and Brazil, where growth for paper and packaging have been strong versus its more traditional markets. .
About 30% of earnings before interest, taxes, depreciation and amortization are estimated to come from outside North America in 2007, up from 20% in 2002.
For the fourth quarter, International Paper expects slightly higher earnings from continuing operations as volumes under a seasonal slowdown in most segments. The company also expects a modest improvement in pricing, while costs for wood, energy and transportation will continue to increase and other costs will remain high.
http://money.cnn.com/news/newsfeeds/articles/djf500/200711021509DOWJONESDJONLINE000808_FORTUNE5.htm
International Paper Co.'s third-quarter net earnings dipped 3% as flat volumes and higher costs for raw materials offset improved selling prices, the company reported Friday.
For the latest quarter, the Memphis, Tenn.-based paper and packaging company (IP) said preliminary net earnings were $217 million, or 51 cents a share, compared to $224 million, or 46 cents, earned a year ago. The number of shares in the recent quarter was about 12% below that of last year.
Revenue increased 2% to $5.54 billion.
International Paper said earnings from continuing operations were 52 cents a share, including 6 cents in one-time charges and a penny in one-time gains.
Excluding the special items, earnings were 57 cents a share, in line with the average profit estimate of analysts surveyed by Thomson Financial.
"The overall quality of the result looks good, in our view, and we were particularly encouraged by a standout operational quarter in the company's white paper business," J.P. Morgan analyst Claudia Shank said in a note.
Shares of International Paper were down 1.4% recently to $35.56. Over the last year, the stock's traded in a range of $41.57 to $31.05.
"Volumes were flat quarter-to-quarter, but we saw overall price improvement, which more than offset some increases in raw-material and distribution costs," Chief Executive John Faraci said in a release.
Last month the company warned that disappointing land sales would push third- quarter earnings below Wall Street targets, which averaged 63 cents a share at the time. .
International Paper has been in the midst of a strategic overhaul, selling its North American land holdings to invest in operations in Europe, Latin American and Brazil, where growth for paper and packaging have been strong versus its more traditional markets. .
About 30% of earnings before interest, taxes, depreciation and amortization are estimated to come from outside North America in 2007, up from 20% in 2002.
For the fourth quarter, International Paper expects slightly higher earnings from continuing operations as volumes under a seasonal slowdown in most segments. The company also expects a modest improvement in pricing, while costs for wood, energy and transportation will continue to increase and other costs will remain high.
http://money.cnn.com/news/newsfeeds/articles/djf500/200711021509DOWJONESDJONLINE000808_FORTUNE5.htm
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