International Paper reports third Quarter 2023 results
The company highlights demand recovery and cost optimization measures in a challenging environment
International Paper has reported its financial results for the third quarter of 2023. The company’s president and chief executive officer, Mark Sutton, said, “We exceeded our full-year goal of building better IP through commercial and process improvement initiatives. Our operations continue to run reliably with a focus on cost control. However, in this challenging macro environment, we are not satisfied with our absolute results. We are taking steps to structurally reduce fixed costs in our factory system, while optimizing our supply chain and investing in our checkout capabilities to grow with customers.”
SEGMENT RESULTS
In the third quarter, Global Cellulose Fibers operating earnings totaled $27 million, down slightly from $30 million in the second quarter. This was due in part to lower pulp prices, which were offset by lower distribution costs and favorable adjustments related to employee benefit costs.
INVESTMENT AND CORPORATE EXPENSES
In the third quarter of 2023, International Paper completed the sale of its investment in the Ilim joint venture, realizing proceeds of $508 million ($472 million net of transaction costs). In addition, net corporate expenses were $20 million compared with $8 million in the second quarter of the same year.
TAX RATE AND SPECIAL ITEMS
The effective tax rate for the third quarter of 2023 was 17%, compared to 13% in the prior quarter. The effective operating tax rate was 18%, compared to 22% in the second quarter, due to higher tax credits and lower rates on foreign earnings.
International Paper full third quarter report is available on the company’s website: https://www.internationalpaper.com/
