) has set voluntary goals to become more sustainable by 2020. These
goals have been included in the recently released Sustainability
Report for 2011.
Trying to fulfill its myriad commitments, the company is all set
to improve energy efficiency in purchased energy use by 15%.
Besides, it is also keen on reducing global GHG emissions (Scope 1
and 2) associated with the manufacturing of products by 20%.
Further, it seeks to increase third party certified fiber volume by
In addition, the company has also addressed other issues related
to fiber certification, philanthropy, safety and water use.
International Paper achieved several sustainability goals in 2011.
These included utilizing renewable biomass to produce 71% of paper
mill energy worldwide along with decreasing total safety incident
rate to its lowest rate.
International Paper, which has been conferred with many awards,
has donated more than $11 million for charity in 2011. Recently,
the company introduced 100% recycled paper for its North American
customers. The paper called Hammermill Great White 100 joins the
company's 30% and 50% recycled paper offerings.
With the acquisition of Andhra Pradesh Paper Mills in India,
International Paper became the first non-Indian forest products
company to enter the Indian market. The company has been providing
seedlings to the local tree farmers.
The company's recent acquisition of Texas-based Temple-Inland is
its largest since the August 2008 acquisition of Weyerhaeuser
Co.'s corrugated-packaging business. The transaction is expected to
be accretive to earnings within 12 months of closing and highly
accretive beyond 2013.
However, given the magnitude of the combined entity, integration
risks continue to be a challenge. Moreover, its debt levels still
remain high. It was further aggravated by the issue of debt to fund
the Temple-Inland acquisition. The debt-to-capitalization ratio
increased to 59.9% as of December 31, 2011, from 53.3% as of
September 30, 2011.
International Paper competes with companies like
). Currently, we have a long-term Neutral recommendation on the
stock, which is in line with the short-term Zacks #3 Rank
INTL PAPER (IP): Free Stock Analysis Report
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WEYERHAEUSER CO (WY): Free Stock Analysis
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