International Paper reports Q2 adjusted EPS 20c, consensus 41c

Reports Q2 revenue $6.8B, consensus $6.7B. “I’m pleased to see our teams gaining momentum as we advance our transformation journey,” said Chief Executive Officer Andy Silvernail. “Our second quarter results reflect a full quarter of our combined International Paper (IP) and DS Smith packaging businesses, as we effectively implement 80/20 strategies. In Packaging Solutions North America, our commercial efforts are driving increased revenue, and we experienced seasonally higher volumes and a stable demand environment. However, margins slipped as we continue to face cost headwinds, and we executed a heavy outage schedule. In Europe, demand remained soft and there was a significant increase in depreciation and amortization expense resulting from our acquisition. Overall, we have exceeded our expectations on commercial actions and are on target to achieve cost-out actions before the end of year.” “Looking ahead,” Silvernail added, “we expect stronger global revenue and earnings in the third quarter, with confirmed strategic wins across our packaging businesses, continued progress on cost-out initiatives, and fewer planned maintenance outages. We remain focused on securing an advantaged cost position, delivering superior customer experience, and maintaining a high relative supply position as we continue our transformation into a differentiated and sustainable global packaging company.”