International Paper reports first-quarter net earnings of $172 million

In the first quarter of 2023, International Paper reported net earnings of US$ 172 million, representing a decrease compared to the US$ 360 million registered in the same period of the previous year. However, the result is positive compared to the net loss of US$ 318 million in the fourth quarter of 2022.

Between January and March, the company had net sales of US$ 5.02 billion, with a decrease in the annual comparison – registering US$ 5.24 billion in the same period last year.

On the other hand, selling and administrative expenses increased to US$ 381 million in the quarter, compared to US$ 341 million a year earlier.

 

“International Paper operated well in the first quarter, while navigating a challenging and dynamic macro environment,” said Mark Sutton, Chairman of the Board and Chief Executive Officer.

“Looking ahead, we expect the demand environment to improve throughout the year as customer inventory destocking runs its course.  We remain focused on serving our customers’ needs, while optimizing our system to drive out high marginal costs and maximizing value for our stakeholders,” Sutton added.

In the pulp fibers segment, the company reported a loss in operating profits of $16 million. According to the company, higher sales prices for fluff pulp were more than offset by lower overall sales volumes, as well as a less favorable combination of lower fluff volumes and higher commodity volumes.

In addition, lower input costs, particularly for energy, were offset by higher planned maintenance outage expenses. Operating costs in the first quarter of 2023 were higher, reflecting the impact of increased economic downtime and inflation.