Packaging products maker International Paper Co. (IP), Thursday reported a surge in first-quarter profit, on growth in Industrial and Consumer packaging segments, partly hurt by lower sales at Printing Papers and Distribution businesses.
Industrial Packaging benefited from better pricing and synergies, while overall results were muted by seasonal soft demand in global operations, weak earnings at its distribution business, xpedx, as well as foreign exchange losses, the company said.
Memphis, Tennessee-based International Paper reported quarterly net income to common shares of $318 million or $0.71 per share, compared to $188 million or $0.43 per share last year.
Results for the quarter included a restructuring tax benefit of $93 million related to the closing of a U.S. federal income tax audit, and restructuring charges of $59 million.
Excluding items, operating earnings for the quarter were $292 million or $0.65 per share, compared to $272 million or $0.63 per share a year ago.
On average, 17 analysts polled by Thomson Reuters expected earnings of $0.74 per share for the quarter. Analysts' estimates typically exclude special items.
Net sales for the quarter were $7.1 billion, compared to $6.7 billion in the prior year. Analysts had a consensus revenue estimate of $7.05 billion for the quarter.
Last month, International Paper revealed talks with Unisource for a merger of xpedx. The plan includes International Paper contributing the assets of xpedx to a newly-formed entity, which would be spun off to International Paper shareholders.
In December, International Paper agreed to sell its Temple-Inland building products unit to Georgia-Pacific LLC for $750 million in cash in order to focus on its paper and packaging business.
The company's stock is trading at $44.43, down 3.18%, on a volume of 7.5 million shares on the NYSE.
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