International Paper has reported on its third quarter 2024 financial results, confirming the DS Smith deal will now complete in Q1 2025 (rather than final quarter of this year as previously suggested).
Third Quarter 2024 highlights include;
- Third quarter net earnings of $150m
- Third quarter adjusted operating earnings (non-GAAP) of $153m
- Third quarter cash provided by operations of $521m and returned $161m to shareholders in dividends
“Our third quarter earnings are above our outlook,” said Andy Silvernail, Chairman and CEO. ”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 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.”
