Skip navigation
Subscribe to Packaging Digest
RSS
Reprints/License
Print
Email

International Paper prepares to complete acquisition of Weyerhaeuser’s packaging business

Edited by David Bellm -- Packaging Digest, 8/1/2008 10:23:00 AM

International Paper had one of its strongest quarters in recent years as it prepares to complete the acquisition of Weyerhaeuser's containerboard, packaging, and recycling business.

According to Bloomberg.com, the high profits surprised analysts, who attribute the results to price increases and foreign investments.

International Paper says earnings per share were $0.56 up from $0.41 in the first quarter of 2008 and $0.52 in the 2007 second quarter. The company also said net sales for the quarter were $5.8 billion, versus $5.7 billion in the first quarter and $5.3 billion in the second quarter of 2007.

"We had a solid quarter because of strong operating performance, cost management, and good results in our businesses outside of the U.S.," said Chairman and CEO John Faraci, "Overall, however, higher than expected input costs continue to negatively impact our real earnings potential."

International Paper says its industry segment operating profits were $393 million for the 2008 second quarter, up from $332 million in the 2008 first quarter and down from $450 million in the second quarter of 2007. The company says the quarter-to-quarter increase reflects improved pricing and operating performance, helping offset higher input costs.

Commenting on the third quarter of 2008, Faraci said, "Despite the current weakness in the U.S. economy, I’m optimistic about our ability to manage through this period and come out in a stronger, better position. We're ready to complete the acquisition of Weyerhaeuser's containerboard, packaging, and recycling business next week, which will give us additional opportunities to reduce costs in our North American packaging business."

The $6 billion deal to buy Weyerhaeuser’s packaging business was announced in March. International Paper has identified profit improvement opportunities of about $400 million annually from the acquisition, 40 percent of which it expects to gain within 12 months of completing the deal.

Previous Article
Owens-Illinois closes Canadian glass container plant … feels targeted by prominent government agency

 

RSS
Reprints/License
Print
Email
Talkback
Related Content

No related content found.

Sponsored Links
Canon Resource Center

Featured Company

Most Recent Resources

Advertisement
Related Content
  • Blogs
  • Photos

Tom Marin

Building Brands

Tom Marin, Brands & Branding Editor, GAM
April 23, 2010
Let’s just say when you see a great ad it’s tough not to smile
Cargill had a big task in front of them when they set out to create advertising...
More

Dennis Salazar

Common Sense and Sustainability

Dennis Salazar
April 21, 2010
Mainstream Media Not Very Sustainable on the Environment
With another Earth Day upon us and especially with this being the 40th anniversary...
More

Tom Marin

Building Brands

Tom Marin, Brands & Branding Editor, GAM
April 16, 2010
You’ll never look at dinner the same way
Most of the blogs that I write fall into two camps. They are either how to...
More

David Bellm

Eye on Packaging

David Bellm
April 15, 2010
Wine packaging: The rare case where organic brands are cheaper
Organic foods and drinks cost more. That’s a given, right? Not so fast....
More

VIEW ALL BLOGS RSS

Advertisement
Qpack ad mkt module
About Us   |   Advertising Info   |   Site Map   |   Contact Us   |   FREE Subscriptions   |   RSS
 © 2010 UBM Canon. All rights reserved.
Use of this Web site is subject to its Terms of Use | Privacy Policy