) reported first quarter 2013 earnings of $318 million or 71
cents per share compared to $188 million or 43 cents per share in
the year-earlier quarter. The increase in earnings was driven by
higher selling prices to customers. The quarterly reported
earnings missed the Zacks Consensus Estimate of 74 cents.
Excluding one-time items, operating earnings for the reported
quarter were $292 million or 65 cents per share versus $272
million or 63 cents per share in the year-ago quarter. .
Net sales for the reported quarter were $7,090 million versus
$6,655 million in the year-ago quarter. The increase in
sales was driven by strong industrial packaging results. The
quarterly sales were ahead of the Zacks Consensus Estimate of
Industrial Packaging: Sales for this segment increased 14.3% year
over year to $3.6 billion. Operating income stood at $355 million
in the reported quarter versus $215 million in the year-ago
quarter. The increase in this segment was driven by higher
selling prices for boxes and containerboard in North America;
offset partially by slow demand, higher input costs and outage
Printing Papers: Sales decreased 1.3% year over year to $1.5
billion in the quarter, while operating income increased to $149
million from $146 million in the prior-year period. The segment
performance was driven by lower maintenance outage expenses in
North America and improved operating costs; partially offset by
slow demand, increased export mix and lower North American
Consumer Packaging: Sales increased 2.5% year over year to $830
million, while operating profit was $7 million compared
with $103 million in the year-ago quarter. The segment
performance was affected by lower maintenance expenses in North
America, partially offset by higher operating costs
Xpedx (Distribution Business): Sales for the segment dropped 6.1%
year over year to $1.4 billion. Segment operating loss was $5
million versus a loss of 2 million in the year-ago quarter
largely due to slow demand, weaker margins and declining
commercial printing and publishing volumes.
Cash and temporary investments dipped significantly to $934
million at Mar 31 2012 compared with $1,302 million as of Dec 31,
2012. Cash flow from operating activities stood at $531 million
versus $581 million in the year-ago period. Long-term debt
decreased to $9.5 billion from $9.7 billion at Dec31, 2012
International Paper recorded Ilim Joint Venture equity losses of
$11 million versus equity earnings of $8 million in fourth
quarter of 2012.
Moving ahead, International Paper expects a rise in annual
maintenance outage spending and expansion project ramp-up costs
at Ilim to impact the second quarter 2013 earnings. However,
pricing initiatives will position the company to deliver better
performance in the second half of 2013.
IP currently has a Zacks Rank #2 (Buy). Other stocks that look
promising and are worth considering in the industry are
PH Glatfelter Co
KapStone Paper and Packaging Corp.
Resolute Forest Products Inc.
), each carrying a Zacks Rank #2 (Buy).
GLATFELTER (GLT): Free Stock Analysis Report
INTL PAPER (IP): Free Stock Analysis Report
KAPSTONE PAPER (KS): Free Stock Analysis
RESOLUTE FOREST (RFP): Free Stock Analysis
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