Jan 29 International Paper Co posted
better-than-expected quarterly profit on Tuesday as strong sales
of corrugated boxes offset weakness in the consumer packaging
IP became the largest North American producer of corrugated
packaging with its 2012 buyout of smaller rival Temple-Inland
, and profit in that unit jumped 10 percent.
Amazon.com Inc is a key IP customer.
But in the consumer packaging unit, profit slumped 38
percent as overseas customers bought more domestically produced
boxes for soap, medicine and other consumer items, causing a
supply glut in the United States, IP Chief Executive John Faraci
said in an interview. Roughly 20 percent of consumer packaging
made in the United States is exported.
"We didn't do as well as we could have in the fourth
quarter," Faraci said.
For the quarter, the company posted net income of $235
million, or 53 cents per share, compared with $281 million, or
65 cents per share, a year earlier.
Excluding one-time items, profit was 69 cents per share. By
that measure, analysts' average forecast was 65 cents, according
to Thomson Reuters I/B/E/S.
Net sales rose 10 percent to $7.08 billion, beating the
average forecast of $6.97 billion.
"Our success capturing merger benefits from the
Temple-Inland acquisition contributed to our fourth-quarter
results and International Paper's record cash generation from
operations in 2012," Faraci said in a statement.
IP sold its building products unit to Georgia-Pacific LLC
last month for $750 million cash, a move designed to
sharpen focus on packaging.
Shares of the company closed at $42.12 on Monday on the New
York Stock Exchange.