International Paper Company IP reported Q3 FY23 sales of $4.61 billion, missing the consensus of $4.81 billion. Adjusted EPS of $0.64 beats the analyst consensus of $0.58.
Industrial Packaging net sales declined to $3.79 billion from $4.39 billion last year. Industrial Packaging operating profits were $325 million versus $304 million in the prior quarter. In North America, earnings improved despite lower sales prices for containerboard and corrugated boxes and an unfavorable geographic mix. In EMEA, earnings were lower, driven by seasonally lower volumes, an unfavorable product mix, and lower containerboard sales prices.
Global Cellulose Fibres net sales fell Y/Y to $725 million from $887 million and segment operating profit plummeted to $27 million from $95 million a year ago. The segement earnings were slightly lower sequentially as lower pulp pricing was mostly offset by lower distribution, input and operating costs.
Q3 operating cash flow was $468 million, bringing year-to-date to $1.3 billion. IP returned $160 million to shareholders in dividends in the quarter.
As of September 30, 2023, cash and temporary investments stood at $1.149 billion.
"Our operations continue to perform reliably with a focus on controlling costs. However, in this challenging macro environment, we are not satisfied with our absolute results. We are taking actions to structurally reduce fixed costs in our mill system, while optimizing our supply chain and investing in our box capabilities to grow with customers," said Mark Sutton, Chairman and CEO.
Also Read: International Paper Gearing Up For Recovery With Optimistic Containerboard Market Trends: Analyst
Price Action: IP shares are trading lower by 0.66% at $33.34 on the last check Thursday.
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