International Paper Reports 2015 First-Quarter Earnings
OREANDA-NEWS. International Paper today reported first quarter 2015 net earnings attributable to common shareholders of USD 313 million (USD 0.74 per share) compared with net earnings of USD 134 million (USD 0.32 per share) in the fourth quarter of 2014 and a net loss of USD 95 million (USD 0.21 per share) in the first quarter of 2014. First quarter 2015 earnings included a USD 0.04 per share non-cash foreign exchange charge for the Ilim JV, as described below, compared with a USD 0.40 per share charge in the fourth quarter of 2014. First quarter 2014 earnings included a pre-tax charge of USD 495 million associated with the Courtland mill shutdown. Amounts in all periods include the impact of special items, if any, non-operating pension expense and discontinued operations.
Operating Earnings were USD 357 million (USD 0.84 per share) in the first quarter of 2015, compared with USD 227 million (USD 0.53 per share) in the fourth quarter of 2014 and USD 260 million (USD 0.60 per share) in the first quarter of 2014.
Quarterly net sales were USD 5.5 billion in the first quarter of 2015 compared with USD 5.9 billion in the fourth quarter of 2014 and USD 5.7 billion in the first quarter of 2014.
Business segment operating profits before special items in the first quarter of 2015 were USD 623 million, compared with USD 694 million in the fourth quarter of 2014 and USD 570 million in the first quarter of 2014.
"International Paper delivered another strong quarter through good execution and cost management that resulted in increased margins," said Mark Sutton , Chairman and Chief Executive Officer. "Our North American Packaging businesses, as well as our Ilim joint venture, performed very well. Looking ahead, we will continue to focus on long term value creation by generating strong free cash flow, making sound strategic investments and returning cash to shareholders."
The performance of the Company's business segments is measured quarter to quarter without variations caused by special items, as management focuses on business segment operating profits excluding those items.
Industrial Packaging operating profits in the first quarter of 2015 were USD 468 million compared with USD 484 million (USD 379 million including special items) in the fourth quarter of 2014. In North America, solid operating performance was largely offset by seasonally lower box volume and lower export pricing. Higher planned maintenance outage costs were offset by lower input costs for energy and freight.
Printing Papers operating profits were USD 109 million in the first quarter of 2015 versus USD 155 million (USD 148 million including special items) in the fourth quarter of 2014. Earnings in North America for Paper and Pulp decreased due to slightly lower average sales prices and higher operating costs due to winter weather and other one-time expenses. In addition, earnings in Brazil decreased due to seasonally lower sales volumes, continued weakness in the local economy and a less favorable mix.
Consumer Packaging operating profits were USD 46 million in the first quarter of 2015 compared with USD 55 million (USD 51 million including special items) in the fourth quarter of 2014. In North America, sales volume and input costs were favorable. The business delivered another solid quarter of operations with some impact from winter weather and start-up issues following a planned maintenance outage.
International Paper recorded Ilim joint venture equity earnings of USD 39 million in the first quarter of 2015 compared with an equity loss of USD 136 million in the fourth quarter of 2014. With respect to Ilim's U.S. dollar denominated net debt, the Company recognized a non-cash after-tax foreign exchange loss of USD 18 million in the first quarter of 2015 (USD 0.04 per share), compared with an after-tax loss of USD 171 million in the fourth quarter of 2014 (USD 0.40 per share), due primarily to foreign exchange movement in the U.S. dollar versus the Russian ruble. Business performance improved due to margin expansion associated with lower operating costs.
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