International Paper gains after co explores options for cellulose fibers unit

DS Smith

31/10/2024 12:55

(Updates)
    ** Shares of International Paper  IP.N  up 7.4% at $52.68
premarket
    ** Co says exploring strategic options for its global
cellulose fibers business and will close its pulp and paper mill
in Georgetown, South Carolina
    ** The global cellulose fibers business made pulp for
feminine care and personal care products, as well as raw
material for textile, paints and construction materials and
generated $2.9 billion in revenue in 2023 - IP
    ** Co says 674 employees to be impacted by closure of the
Georgetown mill
    ** IP's Q3 adj EPS of 44 cents tops estimates of 26 cents,
while revenue in-line - LSEG
    ** Shares in London-listed DS Smith  SMDS.L , which earlier
this year agreed to be taken over by the US company in a $7.2
bln all-share deal, rose 7.3% on the IP news
    ** As of last close, IP shares up ~36% YTD

 (Reporting by Juveria Tabassum in Bengaluru)
 ((Juveria.Tabassum@thomsonreuters.com;))