International Paper tops quarterly sales on higher prices, demand rebound
25/04/2024 12:40
April 25 (Reuters) - Packaging company International
Paper IP.N beat Wall Street's expectations for first-quarter
sales on Thursday, capitalizing on higher prices, improved
production and a rebound in demand for its products.
Initially buoyed by a surge in online shopping during the
pandemic, paper and packaging firms faced a slowdown when
economies reopened. However, demand is on the rise again and
costs - notably for energy, input, freight and wood - have
moderated from previous highs.
Peer Packaging Corp of America PKG.N reported a quarterly
revenue beat on Tuesday from higher pricing, improved production
and a recovery in demand for its corrugated packaging products.
Earlier in the year, European packaging giant Smurfit Kappa
SKG.I , said the worst of the slowdown in terms of demand for
paper and containerboard seemed behind it.
International Paper's total net sales fell about 8%, to
$4.61 billion in the first quarter, but topped analysts'
estimate of $4.56 billion, according to LSEG data.
On an adjusted basis, the company's operating earnings came
in at 17 cents per share, missing an expectation of 22 cents per
share, sending shares down 2% in premarket trading.
The world's leading paper company by revenue, it agreed to
an all-share deal to buy DS Smith SMDS.L earlier this month,
valuing the British packaging firm at 5.8 billion pounds ($7.2
billion) and edging out an offer by Mondi MNDI.L .
(Reporting by Annett Mary Manoj in Bengaluru; Editing by Pooja
Desai)
((AnnettMary.Manoj@thomsonreuters.com))