International Paper's quarterly revenue falls as customer spending weakens

WestRock Co

01/02/2024 16:32

Feb 1 (Reuters) - Renewable fiber-based products
manufacturer International Paper  IP.N  posted a 10% drop in
fourth-quarter revenue on Thursday, hurt by weaker demand for
containerboard and corrugated boxes, sending its shares down 3%.
    Customers have cut back on spending on account of prolonged
inflationary pressures, hurting demand for packaging products,
which has eased from the levels seen during the pandemic-led
lockdowns that led to a surge in online orders.
    International Paper also faced headwinds related to higher
recovered fiber costs.
    The results echo views of peer WestRock  WRK.N , which also
reported a quarterly sales miss on Thursday.
    International Paper's total net sales fell to $4.60 billion
in the three months ended Dec. 31, compared with $5.13 billion a
year ago. Revenue from the industrial packaging segment, its
biggest, dropped 8%.
    The paper and packaging company posted fourth-quarter
adjusted operating earnings of $142 million, or 41 cents per
share, versus $309 million, or 87 cents per share, a year ago.
    

 (Reporting by Aatrayee Chatterjee in Bengaluru; Editing by
Shilpi Majumdar)
 ((Aatrayee.Chatterjee@thomsonreuters.com;))