International Paper reports Q2 2022 net earnings of $511 million - 13% YOY growth
"International Paper delivered strong revenue and earnings growth in the second quarter," says Mark Sutton, Chairman/CEO. "We performed well both commercially and operationally, which contributed to margin expansion despite a challenging supply-chain and input-cost environment. Looking ahead to the third quarter, we expect the realization of prior price movements to outpace higher input costs.
"Our Building a Better IP set of initiatives delivered $65 million of additional earnings improvement in the second quarter, for a total of $105 million through the first half of the year. Given this strong momentum, we are confident in achieving the high end of our full-year target."
Business segment operating profits are used by International Paper's management to measure the earnings performance of its businesses. As a result of the spin-off of our global Printing Papers business on Oct. 1, 2021, the Printing Papers business segment has been eliminated and all prior year amounts have been adjusted to reflect this business as a discontinued operation.
Industrial Packaging operating profits (losses) in the second quarter of 2022 were $560 million compared with $397 million in the first quarter of 2022. In North America, earnings increased driven by higher sales prices for corrugated boxes and containerboard and lower planned maintenance outage expenses, partially offset by higher input costs, primarily for energy and freight. Sales volumes were stable for corrugated boxes and higher for export containerboard. Domestic containerboard volumes were lower. In Europe, earnings improved reflecting higher average sales prices in the Eurozone and strong operating performance partially offset by seasonally lower sales volumes in Morocco.
Global Cellulose Fibers operating profits (losses) in the second quarter of 2022 were $25 million compared with $(49) million in the first quarter of 2022. Earnings improved significantly driven by higher sales prices for both fluff pulp and market pulp and lower planned maintenance outage expenses, partially offset by higher input costs, primarily for energy and chemicals. Sales volumes were slightly higher. Operating costs were lower, reflecting improved mill performance and seasonality.