IP, other packagers' profits beat Wall Street views

NEW YORK (Reuters) - International Paper Co (IP.N) and smaller rivals Silgan Holdings Inc (SLGN.O) and MeadWestvaco Co (MWV.N), posted higher-than-expected earnings on Wednesday as demand for packaging jumped during the second quarter.

International Paper, which processes pulp and makes industrial and consumer packaging, said sales had increased in nearly all its segments.

In a positive sign for the broader economy, the company said volume rose at its consumer packaging unit.

For the second quarter, IP posted net income of $93 million, or 21 cents per share, down from $136 million, or 32 cents per share, a year earlier.

Excluding restructuring charges and other one-time items, profit was 42 cents per share. By that measure, analysts had expected 41 cents, according to Thomson Reuters I/B/E/S.

The year-earlier figures included the so-called black liquor alternative fuel tax credit, which has now been phased out for pulp and paper processors.

Sales at the Memphis, Tennessee-based company rose 5.5 percent to $6.12 billion. Analysts had expected $6.19 billion.

Rival UPM-Kymmene Corp (UPM1V.HE), based in Finland, will post its results on August 3.

SMALLER RIVALS

Meanwhile, MeadWestvaco benefited from strong results at its packaging units and specialty chemicals segments.

The Glen Allen, Virginia-based company said net income fell to $50 million, or 29 cents per share, from $125 million, or 72 cents per share.

Excluding restructuring charges, earnings were 35 cents a share, 2 cents higher than the analysts' average forecast.

Sales rose 8 percent to $1.55 billion, but fell short of estimates of $1.57 billion.

Elsewhere, Silgan Holdings Inc was helped by sales of closure material, which seal metal cans.

The Stamford, Connecticut-based company reported net income of $36.3 million, or 47 cents per share, up from $34.8 million, or 45 cents per share.

Excluding one-time items, the company earned 48 cents per share. Analysts had expected 46 cents.

Sales rose about a percent to $693.9 million, but missed estimates of $699 million.

The company, which also affirmed its full-year outlook, forecast third-quarter profit of between 85 cents and 95 cents per share. Analysts currently expect 96 cents.

Shares of all three companies were not trading in premarket hours.

(Reporting by Ernest Scheyder and Adveith Nair, editing by Gerald E. McCormick and Lisa Von Ahn)