International Paper reports surprise quarterly loss, sales miss on slowing demand

Packaging of America

30/01/2025 13:55

Jan 30 (Reuters) - International Paper  IP.N  posted a
surprise fourth-quarter loss and missed sales estimates on
Thursday due to slowing demand from clients, including consumer
goods and e-commerce companies, opting for cheaper alternatives.
    Shares of the company fell nearly 2% in premarket trading.
    The company's strategy of raising prices for its industrial
packaging offerings has impacted sales volumes, especially in
North America.
    International Paper said the fourth-quarter profit was also
hit by the $215 million accelerated depreciation expense from
the closure of its pulp mill in Georgetown, South Carolina.
    Its quarterly selling and administrative costs for the
quarter grew 46% to $521 million.
    Peer Packaging Corp of America  PKG.N  also missed quarterly
profit estimates on Tuesday due to slowing demand and higher
operating costs.
    For the fourth quarter, the company posted net sales of
$4.58 billion, below the average analyst estimate of $4.75
billion, according to data compiled by LSEG.
    On an adjusted basis, International Paper posted a loss of 2
cents per share, compared with expectations for a profit of 2
cents.
    The Memphis, Tennessee-based company secured EU clearance
for its 5.8-billion-pound ($7.2 billion) acquisition of UK rival
DS Smith  SMDS.L  last Friday, after agreeing to sell assets to
address competition concerns.

 (Reporting by Neil J Kanatt in Bengaluru; Editing by Vijay
Kishore)
 ((Neil.JKanatt@thomsonreuters.com))