International Paper Reports Falling Profit in Q2

International Paper, the Memphis-based paper maker, has reported a decline in profit for the second quarter of this year. However, the company managed to surpass analysts' predictions. Here's what you need to know:

Profit Decline

The company's profit fell from $511 million to $235 million compared to the same period last year. Despite this decrease, it still outperformed expectations, with analysts surveyed by FactSet predicting a profit of $154 million.

Adjusted Earnings

International Paper posted an adjusted profit of 59 cents per share after excluding certain one-time expenses. This exceeded analysts' forecast of 38 cents per share as reported by FactSet.

Declining Revenue

The company's revenue also declined, dropping from $5.02 billion to $4.682 billion compared to the previous year. Analysts polled by FactSet had expected revenue to reach $4.897 billion.

Demand in Focus

International Paper highlighted that customers have been reducing their stock levels, leading to lower sales of boxes and containerboard in the industrial packaging segment due to lower prices. While the company expects demand to improve throughout the year, these factors have impacted current sales.

Cellulose Fibers Segment

Despite declining sales, the company's global cellulose fibers segment witnessed an increase in operating profit from $25 million to $30 million compared to the same period last year. This earnings growth was primarily driven by reduced operating costs.