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International Paper Company Reports Operating Results (10-Q)

November 07, 2012 | About:
10qk

10qk

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International Paper Company (IP) filed Quarterly Report for the period ended 2012-09-30.

International Paper Co. has a market cap of $15.6 billion; its shares were traded at around $35.02 with a P/E ratio of 14.6 and P/S ratio of 0.6. The dividend yield of International Paper Co. stocks is 2.9%. International Paper Co. had an annual average earning growth of 3.3% over the past 10 years.
This is the annual revenues and earnings per share of IP over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of IP.


Highlight of Business Operations:

Printing Papers net sales for the third quarter of 2012 were 5% higher than in the second quarter of 2012 and 2% higher than in the third quarter of 2011. Operating profits included a $1 million gain and a $2 million charge in the third quarter of 2012 and the second quarter of 2012, respectively, associated with the acquisition of a majority share of Andhra Pradesh Paper Mills Limited and a gain of $1 million in the third quarter of 2011 for an adjustment to costs associated with the closure of the Franklin mill. Excluding these items, operating profits in the third quarter of 2012 were 90% higher than in the second quarter of 2012 and 16% lower than in the third quarter of 2011.

Indian Printing Papers net sales were $45 million in the third quarter of 2012 compared with $35 million in the second quarter of 2012. Operating profits were a loss of $2 million ($3 million excluding a gain associated with the acquisition of a majority ownership of Andhra Pradesh Paper Mills (APPM)) in the third quarter of 2012 compared to a loss of $10 million ($8 million excluding costs associated with the acquisition of a majority ownership of APPM), in the second quarter of 2012. The loss in the second quarter of 2012 reflects $8 million of planned maintenance downtime costs.

Distribution net sales in the third quarter of 2012 were 2% higher than in the second quarter of 2012 but 10% lower than in the third quarter of 2011. Operating profits included $9 million, $12 million and $18 million in the third quarter of 2012, the second quarter of 2012 and the third quarter of 2011, respectively, of costs related to the reorganization of the Company s xpedx operations. Excluding these items, operating profits in the third quarter of 2012 were 41% higher than in the second quarter of 2012 and 11% lower than in the third quarter of 2011.

Sales of papers and graphic arts products in the third quarter of 2012 totaled $900 million compared to $860 million in the second quarter of 2012 and $1.0 billion in the third quarter of 2011. Trade margins as a percent of sales for printing papers decreased from the second quarter of 2012 and the third quarter of 2011 due to shifts between warehouse sales and lower-margin sales shipped directly from the manufacturer. Packaging sales were $400 million in the third quarter of 2012, unchanged from the second quarter of 2012 and the third quarter of 2011. Trade margins as a percent of sales for packaging products remain unchanged from the second quarter of 2012 and increased from the third quarter of 2011 reflecting a change in mix. Sales of facility solutions products totaled $235 million in the third quarter of 2012, down from sales of $240 million in the second quarter of 2012 and $250 million in the third quarter of 2011.

On February 13, 2012, International Paper completed the acquisition of Temple-Inland Inc. (Temple-Inland). International Paper acquired all of the outstanding common stock of Temple-Inland for $32.00 per share in cash, totaling approximately $3.7 billion, and assumed approximately $700 million in Temple-Inland s debt. As a condition to allowing the transaction to proceed, the Company entered into an agreement on a proposed Final Judgment with the Antitrust Division of the U.S. Department of Justice (DOJ) that required the Company to divest three containerboard mills, with approximately 970,000 tons of aggregate containerboard capacity, within 24 months months of closing (with the possibility of two 30-day extensions). On May 4, 2012, the Final Judgment, as proposed, was entered by the Court. On June 7, 2012, the DOJ granted the Company an extension of time until July 10, 2012 to complete the divestitures. On July 2, 2012, International Paper finalized the sales of its Ontario and Oxnard (Hueneme), California containerboard mills to New-Indy Containerboard LLC, and its New Johnsonville, Tennessee containerboard mill to Hood Container Corporation. By completing these transactions, the Company satisfied its divestiture obligations under the Final Judgment. See Note 7 for further details.

Read the The complete Report

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