International Paper (IP) reported Q2 2023 financial results. Net earnings were $235 million ($0.68 per diluted share), Adjusted operating earnings were $204 million ($0.59 per diluted share).
“In the Q2, the operations of International Paper continued to run well and we managed our businesses effectively in a challenging demand environment,” said Mark Sutton, Chairman and CEO. “We continued to advance our Building a Better IP initiatives, including our commercial improvement and cost management opportunities. The benefits of that work and our strong financial foundation position International Paper well as we navigate the current economic environment.”
Industrial Packaging operating profits (losses) in the Q2 2023 were $304 million compared with $322 million in the Q1 2023. In North America, earnings decreased on lower sales prices in a continued soft demand environment for corrugated boxes and containerboard as customer inventory destocking continued. The demand environment resulted in additional economic downtime driving higher operating costs that more than offset lower planned maintenance outage costs and input costs, primarily for energy, freight and wood. In EMEA, earnings were flat as lower energy costs were offset by seasonally lower volumes and lower sales prices for containerboard.
Global Cellulose Fibers operating profits (losses) in the Q2 2023 were $30 million compared with $(16) million in the Q1 2023. Earnings improved in spite of lower sales of fluff pulp and decreased pulp pricing in a challenging global market environment impacted by customer inventory destocking as supply chain conditions improved. The earnings improvement was driven by lower operating costs, planned maintenance costs and input costs, primarily for chemicals and energy.
International Paper is a global producer of planet-friendly packaging, pulp and other fiber-based products, and one of North America’s largest recyclers.
