OREANDA-NEWS. February 01, 2013. International Paper (IP) reported preliminary full-year 2012 net earnings attributable to common shareholders totaling USD 794 million compared with USD 1.3 billion in full-year 2011. In the 4Q 2012, the company reported net earnings of USD 235 million compared with USD 281 million in the 4Q 2011. Amounts in all periods include special items and non-operating pension expense, as the company said in a press release received by Lesprom Network.

Full-year 2012 operating earnings were USD 1.2 billion compared with USD 1.4 billion in 2011. Operating earnings in the 4Q 2012 totaled USD 305 million compared with USD 319 million in the 4Q 2011.

Annual sales totaled USD 27.8 billion in 2012 compared with USD 26 billion in 2011. Quarterly net sales were USD 7.1 billion in the 4Q compared with USD 6.4 billion in the 4Q 2011.

Full-year 2012 business segment operating profits were USD 2 billion compared with USD 2.2 billion in 2011. Business segment operating profits in the 4Q were USD 528 million compared with USD 577 million in 2011, both of which included special items.

"Our success capturing merger benefits from the Temple-Inland acquisition contributed to our 4Q results and IP's record cash generation from operations in 2012," said John Faraci, Chairman and CEO. "Given our runway levers and ability to execute, we are positioned to deliver a step-change in earnings as we move through 2013."

Industrial Packaging operating profits in the 4Q 2012 were USD 368 million (USD 336 million including special items) compared with USD 342 million (USD 255 million including special items) in the 3Q 2012. The profit increase in North America was the result of improved pricing, partially offset by higher planned outage-related maintenance expenses and input costs. Profits for the segment also benefited from seasonally higher sales volumes in Europe and an insurance settlement related to the earthquake that occurred in Northern Italy.

Printing Papers operating profits were USD 147 million (before and after special items) in the 4Q 2012 versus USD 201 million (USD 202 million including special items) in the 3Q 2012. North American operations were impacted by higher planned outage-related maintenance expenses, seasonally lower sales and lower average sales price for paper, particularly in export markets. Europe's results were stronger quarter over quarter mainly from lower planned maintenance expenses.

Consumer Packaging operating profits were USD 39 million (USD 41 million including special items) in the 4Q 2012 compared with USD 67 million (before and after special items) in the 3Q 2012. Earnings were impacted by higher outage-related maintenance expenses and lower average sales price primarily due to mix, along with cost associated with the start-up of the coated paper machine in China.

Xpedx, the company's North American distribution business, reported operating profits of USD 11 million (USD 4 million including special items) in the 4Q 2012 compared with USD 24 million (USD 15 million including special items) in the 3Q 2012, reflecting higher operating expenses in the 4Q.

International Paper recorded Ilim joint venture equity earnings of USD 8 million in the 4Q 2012, compared with equity earnings of USD 33 million in the 3Q 2012. 4Q results were lower as modestly higher average prices did not offset increases in input costs. In addition, the after-tax impact of favorable foreign exchange gains was USD 15 million less in the 4Q compared with the 3Q. The gains in both quarters were due to non-cash adjustments associated with the Ilim joint venture's U.S. dollar denominated debt.

Net corporate expenses, excluding non-operating pension expense, for the 4Q 2012 were USD 15 million compared with USD 1 million in the 3Q 2012 and USD 20 million in the 4Q 2011.

International Paper (IP) is a global leader in packaging and paper with manufacturing operations in North America, Europe, Latin America, Russia, Asia and North Africa. Its businesses include industrial and consumer packaging and uncoated papers, complemented by xpedx, the company's North American distribution company.