International Paper Company reported its third-quarter financial results for 2024, showing a slight increase in net sales but a decline in profitability compared to the previous year. For Q3 2024, net sales reached $4,686 million, up from $4,613 million in Q3 2023. However, for the nine months ended September 30, 2024, net sales decreased to $14,039 million from $14,315 million in the same period of 2023.
Earnings from continuing operations for Q3 2024 were $150 million, a decrease from $192 million in Q3 2023, while net earnings for the same period fell to $150 million from $165 million in the prior year. Basic earnings per share from continuing operations were $0.43, down from $0.55 in Q3 2023. For the nine months ended September 30, 2024, net earnings increased to $704 million from $572 million in 2023.
The company’s financial position showed total current assets of $6,643 million as of September 30, 2024, a slight increase from $6,608 million at the end of 2023. Total assets decreased marginally to $23,161 million from $23,261 million. Total current liabilities rose to $4,353 million, up from $3,959 million at the end of 2023.
International Paper is undergoing significant restructuring, including the planned closure of its Georgetown, South Carolina pulp and paper mill, which will result in approximately $270 million in pre-tax charges, including $220 million in accelerated depreciation. This closure is expected to reduce the workforce by about 675 employees. Additionally, the company is closing five packaging plants in North America, with expected restructuring charges of approximately $25 million.
In terms of strategic developments, International Paper announced an all-stock acquisition of DS Smith Plc, valued at approximately $9.9 billion, with the transaction expected to close in early Q1 2025. The company is also reviewing strategic options for its Global Cellulose Fibers business, focusing on sustainable packaging solutions.
Operationally, the North American Industrial Packaging segment generated $3,640 million in revenue for Q3 2024, while the Global Cellulose Fibers segment contributed $710 million. The company faced higher operational costs due to labor, maintenance, and raw material expenses, impacting overall profitability. Despite these challenges, higher sales prices and improved box demand contributed positively to earnings in Q3 2024.
About INTERNATIONAL PAPER CO /NEW/
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