International Paper Reports Third Quarter 2024 Results
International Paper (NYSE: IP) reported third quarter 2024 net earnings of $150 million ($0.42 per diluted share) and adjusted operating earnings of $153 million ($0.44 per diluted share). Cash provided by operations was $521 million, with $161 million returned to shareholders in dividends. The company saw higher prices across its portfolio and moderately improving box demand, though faced higher operating costs and lower volumes due to seasonality. The company is implementing an 80/20 approach, including organizational restructuring and exploring strategic options for Global Cellulose Fibers business. The planned combination with DS Smith is expected to close in early 2025.
International Paper (NYSE: IP) ha riportato utili netti per il terzo trimestre 2024 pari a 150 milioni di dollari (0,42 dollari per azione diluita) e utili operativi rettificati di 153 milioni di dollari (0,44 dollari per azione diluita). I flussi di cassa dalle operazioni sono stati di 521 milioni di dollari, con 161 milioni di dollari restituiti agli azionisti sotto forma di dividendi. L'azienda ha registrato un aumento dei prezzi nel suo portafoglio e una domanda moderatamente in crescita per le scatole, sebbene abbia affrontato costi operativi più elevati e volumi inferiori a causa della stagionalità. L'azienda sta implementando un approccio 80/20, che include una ristrutturazione organizzativa ed esplora opzioni strategiche per il business delle Fibra Cellulosica Globale. La combinazione pianificata con DS Smith dovrebbe concludersi all'inizio del 2025.
International Paper (NYSE: IP) reportó ganancias netas de 150 millones de dólares (0,42 dólares por acción diluida) en el tercer trimestre de 2024 y ganancias operativas ajustadas de 153 millones de dólares (0,44 dólares por acción diluida). El flujo de efectivo proporcionado por las operaciones fue de 521 millones de dólares, con 161 millones de dólares devueltos a los accionistas en forma de dividendos. La empresa vio aumentos en los precios en su cartera y una demanda de cajas que mejoró moderadamente, aunque enfrentó mayores costos operativos y volúmenes más bajos debido a la estacionalidad. La empresa está implementando un enfoque 80/20, que incluye una reestructuración organizativa y la exploración de opciones estratégicas para el negocio de Fibras de Celulosa Global. Se espera que la combinación planificada con DS Smith se cierre a principios de 2025.
국제 제지 (NYSE: IP)는 2024년 3분기 순이익이 1억 5천만 달러(희석주당 0.42달러)이며, 조정된 운영 이익은 1억 5천3백만 달러(희석주당 0.44달러)라고 보고했습니다. 운영에서 발생한 현금은 5억 2천1백만 달러였으며, 1억 6천1백만 달러가 배당금으로 주주에게 반환되었습니다. 회사는 포트폴리오 전반에 걸쳐 가격이 상승했고 상자의 수요가 다소 개선되었지만, 계절적 요인으로 인해 운영 비용이 증가하고 물량이 감소하는 어려움에 직면했습니다. 회사는 80/20 접근 방식을 구현하고 있으며, 여기에는 조직 재구성과 글로벌 셀룰로오스 섬유 사업에 대한 전략적 옵션 탐색이 포함됩니다. DS Smith와 계획된 결합은 2025년 초에 종료될 것으로 예상됩니다.
International Paper (NYSE: IP) a rapporté un bénéfice net de 150 millions de dollars (0,42 dollar par action diluée) pour le troisième trimestre 2024 et un bénéfice d'exploitation ajusté de 153 millions de dollars (0,44 dollar par action diluée). Les flux de trésorerie générés par les opérations se sont élevés à 521 millions de dollars, avec 161 millions de dollars restitués aux actionnaires sous forme de dividendes. L'entreprise a enregistré des prix plus élevés dans son portefeuille et une demande de cartons en légère hausse, bien qu'elle ait dû faire face à des coûts d'exploitation plus élevés et à des volumes plus faibles en raison de la saisonnalité. L'entreprise met en œuvre une approche 80/20, comprenant une restructuration organisationnelle et l'exploration d'options stratégiques pour les fibres de cellulose globales. La combinaison prévue avec DS Smith devrait être finalisée début 2025.
International Paper (NYSE: IP) berichtete für das dritte Quartal 2024 von einem Nettogewinn von 150 Millionen US-Dollar (0,42 US-Dollar pro verwässerter Aktie) und einem bereinigten Betriebsergebnis von 153 Millionen US-Dollar (0,44 US-Dollar pro verwässerter Aktie). Der aus den Betrieben generierte Cashflow betrug 521 Millionen US-Dollar, wobei 161 Millionen US-Dollar in Form von Dividenden an die Aktionäre zurückgegeben wurden. Das Unternehmen verzeichnete höhere Preise in seinem Portfolio und eine moderat steigende Nachfrage nach Boxen, sah sich jedoch höheren Betriebskosten und niedrigeren Volumina aufgrund saisonaler Schwankungen gegenüber. Das Unternehmen setzt einen 80/20-Ansatz um, der eine organisatorische Umstrukturierung und die Erkundung strategischer Optionen für das Geschäft mit globalen Zellulosefasern umfasst. Die geplante Fusion mit DS Smith soll Anfang 2025 abgeschlossen werden.
- Higher prices across portfolio contributing to earnings above outlook
- Strong cash flow with $521 million from operations
- Improved Global Cellulose Fibers segment profit to $40 million from $31 million in Q2
- Continued shareholder returns with $161 million in dividends
- Net earnings declined to $0.42 per share from $1.41 in Q2 2024
- Adjusted operating earnings decreased to $0.44 per share from $0.64 year-over-year
- Industrial Packaging profit dropped to $197 million from $291 million in Q2
- Higher operating costs and lower volumes impacting performance
- Restructuring charges of $56 million related to organizational changes
Insights
International Paper's Q3 2024 results show mixed performance with
The company's 80/20 strategic approach and planned restructuring signal significant organizational changes ahead. The exploration of strategic options for Global Cellulose Fibers and the DS Smith merger expected in Q1 2025 could reshape the company's future. While near-term challenges persist with higher operating costs and volume pressures, the strong cash generation and strategic initiatives position IP for potential long-term value creation.
THIRD QUARTER 2024 HIGHLIGHTS
- Third quarter net earnings of
$150 million $0.42 - Third quarter adjusted operating earnings (non-GAAP) of
$153 million $0.44 - Third quarter cash provided by operations of
$521 million $161 million
"Our third quarter earnings are above our outlook," said Chairman and CEO Andy Silvernail. "Higher prices across the portfolio, including benefits from our packaging go-to-market strategy were supported by a moderately improving box demand environment. We also had higher operating costs and lower volumes due to seasonality and commercial actions to improve profitability."
"Going forward, we are laser-focused on delivering profitable growth as the low-cost, most reliable and innovative sustainable packaging solutions provider for our customers. We are deploying an 80/20 approach to strategically align resources to become excellent with our customers, while reducing complexity and cost across the company. This includes organizational restructuring and corporate cost reductions, as well as investments to strengthen our most competitive and strategic assets, paired with facility closures to structurally reduce operating costs. In addition, we are exploring strategic options for our Global Cellulose Fibers business. We recognize the impact of these difficult decisions and are providing support for team members who are affected," Silvernail added. "As we look forward to the combination with DS Smith, we expect the transaction will close early in the first quarter of 2025. Overall, I'm confident that our transformational journey will unlock substantial value at IP and strengthen the company for our employees, customers and shareholders."
Diluted Net EPS and Adjusted Operating EPS | |||||||
Third | Second | Third | |||||
Net Earnings (Loss) Per Share | $ 0.42 | $ 1.41 | $ 0.47 | ||||
Less – Discontinued Operations (Gain) Loss, Net of Taxes | — | — | 0.08 | ||||
Net Earnings (Loss) from Continuing Operations | 0.42 | 1.41 | 0.55 | ||||
Add Back – Non-Operating Pension Expense (Income) | (0.03) | (0.02) | 0.04 | ||||
Add Back – Net Special Items Expense (Income) | 0.33 | 0.14 | 0.08 | ||||
Income Taxes - Non-Operating Pension and Special Items | (0.28) | (0.98) | (0.03) | ||||
Adjusted Operating Earnings Per Share* | $ 0.44 | $ 0.55 | $ 0.64 | ||||
* | Adjusted operating earnings per share (non-GAAP) is defined as net earnings (loss) per share (GAAP) excluding the per share impact of discontinued operations, net special items and non-operating pension expense (income). Diluted earnings (loss) per share is the most directly comparable GAAP measure. Management uses this measure to focus on on-going operations, and believes that such measure is useful to investors in assessing the operational performance of the Company and enabling investors to perform meaningful comparisons of past and present consolidated operating results from continuing operations. For discussion of discontinued operations, net special items and non-operating pension expense (income), see the disclosure under Effects of Net Special Items, Discontinued Operations, Net of Taxes and Consolidated Statement of Operations and related notes included later in this release. A reconciliation of net earnings (loss) to adjusted operating earnings and diluted earnings (loss) per share to adjusted operating earnings per share, and an explanation of why we believe these non-GAAP financial measures provide useful information to investors, are included later in this release. |
Select Financial Measures | |||||||
(In millions) | Third | Second | Third | ||||
Net Sales | $ 4,686 | $ 4,734 | $ 4,613 | ||||
Net Earnings (Loss) | 150 | 498 | 165 | ||||
Adjusted Operating Earnings | 153 | 193 | 224 | ||||
Cash Provided By (Used For) Operations | 521 | 365 | 468 | ||||
Free Cash Flow** | 309 | 167 | 240 | ||||
** | Free cash flow is a non-GAAP financial measure, which equals cash provided by operations less cash invested in capital projects. The most directly comparable GAAP measure is cash provided by (used for) operations. A reconciliation of cash provided by (used for) operations to free cash flow and an explanation of why we believe this non-GAAP financial measure provides useful information to investors, are included later in this release. |
SEGMENT INFORMATION
The following table presents net sales and business segment operating profit (loss), which is the Company's measure of segment profitability. Business segment operating profit (loss) is a measure reported to our management for purposes of making decisions about allocating resources to our business segments and assessing the performance of our business segments and is presented in our financial statement footnotes in accordance with ASC 280 - "Segment Reporting". Third quarter 2024 net sales by business segment and operating profit (loss) by business segment compared with the second quarter of 2024 and the third quarter of 2023 are as follows:
Business Segment Results | |||||||
(In millions) | Third | Second | Third | ||||
Net Sales by Business Segment | |||||||
Industrial Packaging | $ 3,926 | $ 3,931 | $ 3,787 | ||||
Global Cellulose Fibers | 710 | 717 | 725 | ||||
Corporate and Inter-segment Sales | 50 | 86 | 101 | ||||
Net Sales | $ 4,686 | $ 4,734 | $ 4,613 | ||||
Business Segment Operating Profit (Loss) | |||||||
Industrial Packaging | $ 197 | $ 291 | $ 325 | ||||
Global Cellulose Fibers | 40 | 31 | 27 | ||||
Industrial Packaging business segment operating profit (loss) in the third quarter of 2024 was
Global Cellulose Fibers business segment operating profit (loss) in the third quarter of 2024 was
EFFECTS OF SPECIAL ITEMS
Net special items include items considered by management to not be reflective of the Company's underlying operations. Net special items in the third quarter of 2024 amount to a net after-tax charge of
Third Quarter 2024 | Second Quarter 2024 | Third Quarter 2023 | |||||||||||
(In millions) | Before Tax | After Tax | Before Tax | After Tax | Before Tax | After Tax | |||||||
Restructuring and other charges, net: | |||||||||||||
Severance costs | $ 56 | $ 42 | (a) | $ — | $ — | $ — | $ — | ||||||
Total restructuring and other charges, net | 56 | 42 | — | — | — | — | |||||||
Environmental remediation adjustment | — | — | 25 | 19 | (f) | 29 | 22 | (h) | |||||
DS Smith combination costs | 26 | 26 | (b) | 17 | 17 | (b) | — | — | |||||
Strategic advisory fees | 25 | 19 | (b) | 12 | 9 | (b) | — | — | |||||
(6) | (6) | (c) | — | — | — | — | |||||||
Third-party warehouse fire | 13 | 9 | (d) | — | — | — | — | ||||||
Net (gain) loss on miscellaneous land sales | — | — | (5) | (4) | (g) | — | — | ||||||
Interest related to settlement of tax audits | — | — | — | — | — | — | |||||||
Tax benefit related to internal legal entity restructuring | — | (78) | (e) | — | (338) | (e) | — | — | |||||
Tax benefit related to settlement of tax audits | — | — | — | — | — | — | |||||||
Total special items, net | $ 114 | $ 12 | $ 49 | $ (297) | $ 29 | $ 22 | |||||||
(a) | Severance costs associated with the Company's 80/20 strategic approach which includes the realignment of resources. |
(b) | Transaction related costs that the Company believes are not reflective of the Company's underlying operations. |
(c) | Settlement associated with an Italian antitrust matter initially recorded as a special item in 2019. |
(d) | The Company's cost for third-party damages associated with a warehouse fire in |
(e) | Tax benefit resulting from internal legal entity restructuring. |
(f) | Environmental remediation adjustment associated with remediation work at a waste pit site at a mill acquired but never operated by the Company and last utilized by the predecessor owner of the mill. |
(g) | (Gains) losses recognized in connection with miscellaneous land sales that the Company believes are not reflective of the Company's underlying operations. |
(h) | Environmental remediation adjustment associated with remediation work at a wastewater management unit at a mill that the Company divested in 1999. |
EARNINGS WEBCAST
The company will host a webcast today to discuss earnings and current market conditions, beginning at 10 a.m. ET (9 a.m. CT). All interested parties are invited to listen to the webcast via the company's website by clicking on the Investors tab and going to the Events & Presentations page at https://www.internationalpaper.com/investors/events-presentations. A replay of the webcast will also be on the website beginning approximately two hours after the call.
Parties who wish to participate in the webcast via teleconference may dial +1 (646) 307-1963 or, within the
About International Paper
International Paper (NYSE: IP) is a global producer of sustainable packaging, pulp and other fiber-based products, and one of the world's largest recyclers. Headquartered in
Visit https://www.internationalpaper.com/investors for more information regarding International Paper, including a slide presentation regarding the third quarter 2024. We use this website as a primary channel for disclosing key information to our investors, some of which may contain material and previously non-public information.
Cautionary Statement Regarding Forward-Looking Statements
Certain statements in this press release that are not historical in nature may be considered "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements can be identified by the use of forward-looking or conditional words such as "expects," "anticipates," "believes," "estimates," "could," "should," "can," "forecast," "intend," "look," "may," "will," "remain," "confident," "commit" and "plan" or similar expressions. These statements are not guarantees of future performance and reflect management's current views and speak only as to the dates the statements are made and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied in these statements. All statements, other than statements of historical fact, are forward-looking statements, including, but not limited to, statements regarding anticipated financial results, economic conditions, industry trends, future prospects and the execution and consummation of corporate transactions or contemplated acquisitions, including our proposed business combination with DS Smith Plc. Factors which could cause actual results to differ include but are not limited to: (i) our ability to consummate and achieve the benefits expected from, and other risks associated with, acquisitions, joint ventures, divestitures, spinoffs, capital investments and other corporate transactions, including, but not limited to, our proposed business combination with DS Smith Plc and our ability to integrate and implement our plans, forecasts, and other expectations with respect to the combined company; (ii) uncertainty as to whether or when the business combination may be completed, if at all; (iii) risks with respect to climate change and global, regional, and local weather conditions, as well as risks related to our targets and goals with respect to climate change and the emission of greenhouse gases (GHG) and other environmental, social and governance matters, including our ability to meet such targets and goals; (iv) loss contingencies and pending, threatened or future litigation, including with respect to environmental related matters; (v) the level of our indebtedness, risks associated with our variable rate debt, and changes in interest rates (including the impact of current elevated interest rate levels and the potential for ongoing reductions in interest rates); (vi) the impact of global and domestic economic conditions and industry conditions, including with respect to current negative macroeconomic conditions, inflationary pressures and changes in the cost or availability of raw materials, energy sources and transportation sources, supply chain shortages and disruptions, competition we face, cyclicality and changes in consumer preferences, demand and pricing for our products, and conditions impacting the credit, capital and financial markets; (vii) risks arising from conducting business internationally, domestic and global geopolitical conditions, military conflict (including the
INTERNATIONAL PAPER COMPANY | ||||||||||||
Three Months Ended | Three Months Ended | Nine Months Ended | ||||||||||
2024 | 2023 | 2024 | 2024 | 2023 | ||||||||
Net Sales | $ 4,686 | $ 4,613 | $ 4,734 | $ 14,039 | $ 14,315 | |||||||
Costs and Expenses | ||||||||||||
Cost of products sold | 3,342 | (a) | 3,345 | (h) | 3,360 | (a) | 10,126 | (a) | 10,347 | (h) | ||
Selling and administrative expenses | 508 | (b) | 286 | 453 | (b) | 1,319 | (b) | 1,003 | ||||
Depreciation and amortization | 267 | 258 | 261 | 806 | (c) | 743 | ||||||
Distribution expenses | 357 | 382 | 379 | 1,127 | 1,180 | |||||||
Taxes other than payroll and income taxes | 37 | 39 | 35 | 113 | 115 | |||||||
Restructuring and other charges, net | 56 | (d) | — | — | 59 | (d) | — | |||||
Net (gains) losses on sales of fixed assets | — | — | (5) | (e) | — | (e) | — | |||||
Interest expense, net | 51 | 58 | 55 | 152 | (f) | 179 | (i) | |||||
Non-operating pension expense (income) | (12) | 13 | (10) | (34) | 40 | |||||||
Earnings (Loss) From Continuing Operations Before Income Taxes and Equity Earnings (Loss) | 80 | 232 | 206 | 371 | 708 | |||||||
Income tax provision (benefit) | (71) | (g) | 39 | (293) | (g) | (337) | (g) | 120 | (j) | |||
Equity earnings (loss), net of taxes | (1) | (1) | (1) | (4) | (2) | |||||||
Earnings (Loss) From Continuing Operations | 150 | 192 | 498 | 704 | 586 | |||||||
Discontinued operations, net of taxes | — | (27) | (k) | — | — | (14) | (k) | |||||
Net Earnings (Loss) | $ 150 | $ 165 | $ 498 | $ 704 | $ 572 | |||||||
Basic Earnings Per Common Share | ||||||||||||
Earnings (loss) from continuing operations | $ 0.43 | $ 0.55 | $ 1.43 | $ 2.02 | $ 1.69 | |||||||
Discontinued operations, net of taxes | — | (0.08) | — | — | (0.04) | |||||||
Net earnings (loss) | $ 0.43 | $ 0.47 | $ 1.43 | $ 2.02 | $ 1.65 | |||||||
Diluted Earnings Per Common Share | ||||||||||||
Earnings (loss) from continuing operations | $ 0.42 | $ 0.55 | $ 1.41 | $ 1.99 | $ 1.68 | |||||||
Discontinued operations, net of taxes | — | (0.08) | — | — | (0.04) | |||||||
Net earnings (loss) | $ 0.42 | $ 0.47 | $ 1.41 | $ 1.99 | $ 1.64 | |||||||
Average Shares of Common Stock Outstanding - Diluted | 353.4 | 348.1 | 352.8 | 353.6 | 349.0 | |||||||
The accompanying notes are an integral part of this Consolidated Statement of Operations. | ||||||||||||
(a) | Includes a pre-tax charge of | |||||||||||
(b) | Includes pre-tax charges of | |||||||||||
(c) | Includes a pre-tax charge of | |||||||||||
(d) | Includes a pre-tax charge of | |||||||||||
(e) | Includes a pre-tax net gain of | |||||||||||
(f) | Includes pre-tax income of | |||||||||||
(g) | Includes a tax benefit of | |||||||||||
(h) | Includes a pre-tax charge of | |||||||||||
(i) | Includes income of | |||||||||||
(j) | Includes a tax benefit of | |||||||||||
(k) | Includes charges of | |||||||||||
INTERNATIONAL PAPER COMPANY | ||||||||||||
Three Months Ended | Three Months | Nine Months Ended | ||||||||||
2024 | 2023 | 2024 | 2024 | 2023 | ||||||||
Net Earnings (Loss) | $ 150 | $ 165 | $ 498 | $ 704 | $ 572 | |||||||
Less: Discontinued operations, net of taxes (gain) loss | — | 27 | — | — | 14 | |||||||
Earnings (Loss) from Continuing Operations | 150 | 192 | 498 | 704 | 586 | |||||||
Add back: Non-operating pension expense (income) | (12) | 13 | (10) | (34) | 40 | |||||||
Add back: Net special items expense (income) | 114 | 29 | 49 | 181 | 26 | |||||||
Income taxes - Non-operating pension and special items | (99) | (10) | (344) | (444) | (39) | |||||||
Adjusted Operating Earnings | $ 153 | $ 224 | $ 193 | $ 407 | $ 613 | |||||||
Three Months Ended | Three Months | Nine Months Ended | ||||||||||
2024 | 2023 | 2024 | 2024 | 2023 | ||||||||
Diluted Earnings per Common Share as Reported | $ 0.42 | $ 0.47 | $ 1.41 | $ 1.99 | $ 1.64 | |||||||
Less: Discontinued operations, net of taxes (gain) loss | — | 0.08 | — | — | 0.04 | |||||||
Continuing Operations | 0.42 | 0.55 | 1.41 | 1.99 | 1.68 | |||||||
Add back: Non-operating pension expense (income) | (0.03) | 0.04 | (0.02) | (0.09) | 0.11 | |||||||
Add back: Net special items expense (income) | 0.33 | 0.08 | 0.14 | 0.51 | 0.07 | |||||||
Income taxes per share - Non-operating pension and special items | (0.28) | (0.03) | (0.98) | (1.26) | (0.10) | |||||||
Adjusted Operating Earnings per Share | $ 0.44 | $ 0.64 | $ 0.55 | $ 1.15 | $ 1.76 | |||||||
Notes: | ||||||||||||
Adjusted Operating Earnings and Adjusted Operating Earnings Per Share are non-GAAP measures defined as net earnings (loss) (a GAAP measure) excluding discontinued operations, net special items and non-operating pension expense (income). Net earnings (loss) and Diluted earnings (loss) per share are the most directly comparable GAAP measures. The Company calculates Adjusted Operating Earnings (non-GAAP) by excluding the after-tax effect of discontinued operations, non-operating pension expense (income) and net special items, as described in greater detail above, from the net earnings (loss) reported under | ||||||||||||
Non-operating pension expense (income) represents amortization of prior service cost, amortization of actuarial gains/losses, expected return on assets and interest cost. The Company excludes these amounts from Adjusted Operating Earnings as the Company does not believe these items reflect ongoing operations. These particular pension cost elements are not directly attributable to current employee service. The Company includes service cost in our non-GAAP measure as it is directly attributable to employee service, and the corresponding employees' compensation elements, in connection with ongoing operations. | ||||||||||||
Since diluted earnings per share are computed independently for each period, nine-month per share amounts may not equal the sum of respective quarters. | ||||||||||||
INTERNATIONAL PAPER COMPANY | |||
September 30, 2024 | December 31, 2023 | ||
Assets | |||
Current Assets | |||
Cash and Temporary Investments | $ 1,159 | $ 1,113 | |
Accounts and Notes Receivable, Net | 3,116 | 3,059 | |
Contract Assets | 434 | 433 | |
Inventories | 1,795 | 1,889 | |
Other | 139 | 114 | |
Total Current Assets | 6,643 | 6,608 | |
Plants, Properties and Equipment, Net | 9,960 | 10,150 | |
Investments | 161 | 163 | |
Long-Term Financial Assets of Variable Interest Entities | 2,326 | 2,312 | |
Goodwill | 3,038 | 3,041 | |
Overfunded Pension Plan Assets | 197 | 118 | |
Right of Use Assets | 438 | 448 | |
Deferred Charges and Other Assets | 398 | 421 | |
Total Assets | $ 23,161 | $ 23,261 | |
Liabilities and Equity | |||
Current Liabilities | |||
Notes Payable and Current Maturities of Long-Term Debt | 259 | 138 | |
Accounts Payable and Other Current Liabilities | 4,094 | 3,821 | |
Total Current Liabilities | 4,353 | 3,959 | |
Long-Term Debt | 5,307 | 5,455 | |
Long-Term Nonrecourse Financial Liabilities of Variable Interest Entities | 2,118 | 2,113 | |
Deferred Income Taxes | 957 | 1,552 | |
Underfunded Pension Benefit Obligation | 247 | 280 | |
Postretirement and Postemployment Benefit Obligation | 126 | 140 | |
Long-Term Lease Obligations | 295 | 312 | |
Other Liabilities | 1,129 | 1,095 | |
Equity | |||
Common Stock | 449 | 449 | |
Paid-in Capital | 4,710 | 4,730 | |
Retained Earnings | 9,705 | 9,491 | |
Accumulated Other Comprehensive Loss | (1,554) | (1,565) | |
13,310 | 13,105 | ||
Less: Common Stock Held in Treasury, at Cost | 4,681 | 4,750 | |
Total Equity | 8,629 | 8,355 | |
Total Liabilities and Equity | $ 23,161 | $ 23,261 | |
INTERNATIONAL PAPER COMPANY | |||
Nine Months Ended September 30, | |||
2024 | 2023 | ||
Operating Activities | |||
Net earnings (loss) | $ 704 | $ 572 | |
Depreciation and amortization | 806 | 743 | |
Deferred income tax expense (benefit), net | (606) | (47) | |
Restructuring and other charges, net | 59 | — | |
Net (gains) losses on sales and impairments of equity method investments | — | 135 | |
Equity method dividends received | — | 13 | |
Equity (earnings) losses, net of taxes | 4 | (109) | |
Periodic pension (income) expense, net | (1) | 70 | |
Other, net | 99 | 36 | |
Changes in current assets and liabilities | |||
Accounts and notes receivable | (79) | 201 | |
Contract assets | (1) | 7 | |
Inventories | 49 | 62 | |
Accounts payable and accrued liabilities | 233 | (332) | |
Interest payable | 24 | (5) | |
Other | (10) | (5) | |
Cash Provided By (Used For) Operating Activities | 1,281 | 1,341 | |
Investment Activities | |||
Invested in capital projects | (661) | (836) | |
Proceeds from sale of equity method investments, net of transaction costs | — | 472 | |
Proceeds from insurance recoveries | 25 | — | |
Proceeds from sale of fixed assets | 5 | 4 | |
Other | (3) | 2 | |
Cash Provided By (Used For) Investment Activities | (634) | (358) | |
Financing Activities | |||
Repurchases of common stock and payments of restricted stock tax withholding | (22) | (218) | |
Issuance of debt | — | 772 | |
Reduction of debt | (33) | (689) | |
Change in book overdrafts | (51) | (26) | |
Dividends paid | (482) | (482) | |
Other | — | (1) | |
Cash Provided By (Used for) Financing Activities | (588) | (644) | |
Effect of Exchange Rate Changes on Cash and Temporary Investments | (13) | 6 | |
Change in Cash and Temporary Investments | 46 | 345 | |
Cash and Temporary Investments | |||
Beginning of the period | 1,113 | 804 | |
End of the period | $ 1,159 | $ 1,149 | |
INTERNATIONAL PAPER COMPANY | |||||||||
Three Months Ended | Nine Months Ended | ||||||||
2024 | 2023 | 2024 | 2023 | ||||||
Cash Provided By (Used For) Operating Activities | $ 521 | $ 468 | $ 1,281 | $ 1,341 | |||||
Adjustments: | |||||||||
Cash invested in capital projects | (212) | (228) | (661) | (836) | |||||
Free Cash Flow | $ 309 | $ 240 | $ 620 | $ 505 | |||||
Free cash flow is a non-GAAP measure which equals cash provided by (used for) operating activities less cash invested in capital projects, and the most directly comparable GAAP measure is cash provided by operations. Management utilizes this measure in connection with managing our business and believes that free cash flow is useful to investors as a liquidity measure because it measures the amount of cash generated that is available, after reinvesting in the business, to maintain a strong balance sheet, pay dividends, repurchase stock, service debt and make investments for future growth. It should not be inferred that the entire free cash flow amount is available for discretionary expenditures. | |||||||||
The non-GAAP financial measures presented in this release have limitations as analytical tools and should not be considered in isolation or as a substitute for an analysis of our results calculated in accordance with GAAP. In addition, because not all companies use identical calculations, the Company's presentation of non-GAAP measures in this release may not be comparable to similarly titled measures disclosed by other companies, including companies in the same industry as International Paper. | |||||||||
Management believes non-GAAP financial measures, when used in conjunction with information presented in accordance with GAAP, can facilitate a better understanding of the impact of various factors and trends on the Company's financial results. Management also uses these non-GAAP financial measures in making financial, operating and planning decisions and in evaluating the Company's performance. Investors are cautioned to not place undue reliance on any non-GAAP financial measures used in this release. | |||||||||
View original content:https://www.prnewswire.com/news-releases/international-paper-reports-third-quarter-2024-results-302292114.html
SOURCE International Paper
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