07.11.2015, 01:00
International Paper Reports 2015 Third-Quarter Earnings
OREANDA-NEWS. Quarterly net sales were USD 5.7 billion in the third quarter of 2015 compared with USD 5.7 billion in the second quarter of 2015 and USD 6.1 billion in the third quarter of 2014. Revenues continue to be negatively impacted by foreign exchange translation.
Business segment operating profits before special items in the third quarter of 2015 were USD 773 million, compared with USD 663 million in the second quarter of 2015 and USD 840 million in the third quarter of 2014.
Free cash flow was USD 512 million in the third quarter. Cash from operations was USD 837 million.
"International Paper delivered another strong performance in the third quarter, highlighted by 25% EBITDA margins in our North American Industrial Packaging business and excellent operating results from our Ilim Joint Venture," said Mark Sutton, Chairman and Chief Executive Officer. "We remain confident in our ability to continue to deliver consistent, robust free cash flow and create long-term shareholder value, despite a global macro environment that remains challenged."
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. Third quarter 2015 business segment operating profits and business trends compared with the prior quarter are as follows:
Industrial Packaging operating profits in the third quarter of 2015 were USD 553 million compared with USD 528 million in the second quarter of 2015. In North America, earnings were higher due primarily to lower planned maintenance outage costs, partially offset by lower export pricing and higher input costs.
Printing Papers operating profits were USD 179 million in the third quarter of 2015 versus USD 101 million in the second quarter of 2015. Earnings in North America were higher due to increased volume, strong operations and lower planned maintenance outage expenses. In Brazil, earnings improved primarily due to seasonally higher volume in the domestic Brazilian market and strong results on export sales.
Consumer Packaging operating profits were USD 41 million (a loss of USD 153 million including special items) in the third quarter of 2015 compared with USD 34 million (USD 47 million including special items) in the second quarter of 2015. In North America, improved manufacturing operations and lower planned maintenance outage costs were partially offset by weaker commercial conditions, which resulted in increased market-related downtime, slightly lower prices and a less favorable mix. Earnings in Europe were higher mainly due to increased volume and lower planned maintenance outage costs.
International Paper recorded Ilim joint venture equity loss of USD 9 million in the third quarter of 2015 compared with earnings of USD 67 million in the second quarter of 2015. Primarily due to Ilim's U.S. dollar denominated net debt, the company recognized a non-cash after-tax foreign exchange loss of USD 65 million in the third quarter of 2015 (USD 0.15 per share), compared with an after-tax gain ofUSD 27 million in the second quarter of 2015 (USD 0.06 per share). The JV recorded record operational EBITDA results for the quarter due to increased margins on export sales and strong operational performance.
Business segment operating profits before special items in the third quarter of 2015 were USD 773 million, compared with USD 663 million in the second quarter of 2015 and USD 840 million in the third quarter of 2014.
Free cash flow was USD 512 million in the third quarter. Cash from operations was USD 837 million.
"International Paper delivered another strong performance in the third quarter, highlighted by 25% EBITDA margins in our North American Industrial Packaging business and excellent operating results from our Ilim Joint Venture," said Mark Sutton, Chairman and Chief Executive Officer. "We remain confident in our ability to continue to deliver consistent, robust free cash flow and create long-term shareholder value, despite a global macro environment that remains challenged."
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. Third quarter 2015 business segment operating profits and business trends compared with the prior quarter are as follows:
Industrial Packaging operating profits in the third quarter of 2015 were USD 553 million compared with USD 528 million in the second quarter of 2015. In North America, earnings were higher due primarily to lower planned maintenance outage costs, partially offset by lower export pricing and higher input costs.
Printing Papers operating profits were USD 179 million in the third quarter of 2015 versus USD 101 million in the second quarter of 2015. Earnings in North America were higher due to increased volume, strong operations and lower planned maintenance outage expenses. In Brazil, earnings improved primarily due to seasonally higher volume in the domestic Brazilian market and strong results on export sales.
Consumer Packaging operating profits were USD 41 million (a loss of USD 153 million including special items) in the third quarter of 2015 compared with USD 34 million (USD 47 million including special items) in the second quarter of 2015. In North America, improved manufacturing operations and lower planned maintenance outage costs were partially offset by weaker commercial conditions, which resulted in increased market-related downtime, slightly lower prices and a less favorable mix. Earnings in Europe were higher mainly due to increased volume and lower planned maintenance outage costs.
International Paper recorded Ilim joint venture equity loss of USD 9 million in the third quarter of 2015 compared with earnings of USD 67 million in the second quarter of 2015. Primarily due to Ilim's U.S. dollar denominated net debt, the company recognized a non-cash after-tax foreign exchange loss of USD 65 million in the third quarter of 2015 (USD 0.15 per share), compared with an after-tax gain ofUSD 27 million in the second quarter of 2015 (USD 0.06 per share). The JV recorded record operational EBITDA results for the quarter due to increased margins on export sales and strong operational performance.
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