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IP · International Paper

34 filings

10-K

IP 10-K Annual Reports

International Paper - 34 annual reports

Filing record · 2016–202610-K1110-Q328-K153

2025
International Paper Annual Report, Year Ended Dec 31, 2025
International Paper Company reported 2025 net sales of $23.63 billion, up from $15.84 billion in 2024, largely reflecting the acquisition of DS Smith on January 31, 2025 (enterprise value of approximately $9.9 billion). The company swung to a loss from continuing operations of $(2.84) billion, driven by a $2.47 billion pre-tax non-cash goodwill impairment on the PS EMEA reporting unit, $958 million of non-cash accelerated depreciation tied to asset rationalization, and $626 million of restructuring charges. Adjusted EBITDA from continuing operations was $2.98 billion versus $1.64 billion in 2024. Cash provided by operating activities was $1.70 billion and free cash flow was $(159) million, as capital expenditures rose to $1.86 billion. Net loss was $(3.52) billion, including $1.07 billion of pre-tax impairment on the Global Cellulose Fibers business, which was sold to American Industrial Partners for $1.5 billion and closed in January 2026. Management announced on January 29, 2026 a plan to separate into two independent public companies, North America and EMEA, expected to be completed in 12 to 15 months. Total debt was approximately $9.8 billion at year-end 2025, and the company paid $977 million in dividends. Management's 2026 capital expenditure outlook is $1.95 billion to $2.05 billion. The company disclosed pending exposures, including a containerboard price-fixing class action filed in July 2025, the Italian Competition Authority matter, and a Brazilian tax dispute carried under the Sylvamo tax matters agreement with a potential company liability of approximately $274 million. Deloitte & Touche LLP issued unqualified opinions on the financial statements and internal control, which excluded DS Smith, representing approximately 43% of total assets and 33% of net sales.
Feb 27, 2026
2024
International Paper Annual Report, Year Ended Dec 31, 2024
International Paper Company reported full-year 2024 net earnings attributable to shareholders of $557 million ($1.57 per diluted share), compared with $288 million ($0.82 per diluted share) in 2023. Net sales were $18.6 billion, down $297 million or 2% from 2023, driven by lower sales volumes partially offset by higher sales prices. Adjusted operating earnings were $400 million ($1.13 per share) versus $438 million in 2023. Cash provided by operations was $1.68 billion and free cash flow was $757 million, with capital spending of $921 million. Management said earnings stabilized in the fourth quarter of 2024 and expects to accelerate earnings improvement in 2025. The year was dominated by the 80/20 strategic approach, a corporate overhead restructuring, the planned closure of the Georgetown, South Carolina mill, and a review of strategic options for the Global Cellulose Fibers business. Restructuring and other charges totaled $221 million, and net special items were $363 million pre-tax. A net income tax benefit of $415 million, driven by a $416 million benefit from an internal legal entity restructuring, produced a reported effective tax rate of (282)%. The company also completed its business combination with DS Smith on January 31, 2025, issuing 178,126,631 new shares, which holders will own approximately 34.1% of after issuance. The filing also discloses a February 2025 plan to close the Campti, Louisiana containerboard mill, with approximately $357 million of expected pre-tax charges in the first quarter of 2025. At year-end 2024 the company had approximately $5.6 billion of outstanding indebtedness, $1.9 billion of credit facilities, and long-term credit ratings of BBB (S&P) and Baa2 (Moody's), both with stable outlooks. Investors should weigh the post-merger integration risks, the two-exchange listing, and the sensitivity of earnings to pricing and mill reliability.
Feb 21, 2025
2023
International Paper Annual Report, Year Ended Dec 31, 2023
International Paper Company reported full-year 2023 net earnings attributable to shareholders of $288 million ($0.82 per diluted share), compared with $1.5 billion ($4.10 per diluted share) in 2022. Net sales were $18.9 billion versus $21.2 billion in 2022. The filing attributes the decline to weaker underlying demand, declining sales prices, inventory destocking by customers, and continued cost inflation. Adjusted Operating Earnings Attributable to Shareholders were $755 million ($2.16 per share) in 2023, versus $1.17 billion ($3.18 per share) in 2022. Cash provided by operations, including discontinued operations, was $1.8 billion, and free cash flow was $692 million. During 2023 the company sold its 50% stake in Ilim S.A. for $508 million, exiting Russia, and permanently closed its Orange, Texas containerboard mill and ceased production on two pulp machines at its Riegelwood, North Carolina and Pensacola, Florida mills. These actions produced pre-tax charges of roughly $347 million (mill closure, non-cash) and $75 million (machine shutdowns, non-cash), plus cash severance and shutdown charges of about $81 million and $37 million. The company returned approximately $840 million to shareowners in 2023, including about $640 million of dividends and $200 million of share repurchases. Management expects the first quarter of 2024 to be an earnings trough and targets more than $400 million of net benefits from commercial and operational initiatives in 2024, with capital spending of $800 million to $1.0 billion. At December 31, 2023, the company had approximately $5.6 billion of outstanding indebtedness, long-term credit ratings of BBB (S&P) and Baa2 (Moody's), both with stable outlooks, and about $1.9 billion of credit facilities. The filing also discloses a potential Brazilian tax exposure under the Sylvamo tax matters agreement, with assessments totaling approximately $393 million (adjusted for currency), of which the company would bear 60% of the first $300 million and 100% above that.
Feb 16, 2024
2022
International Paper Annual Report, Year Ended Dec 31, 2022
International Paper Company reported full-year 2022 net earnings attributable to shareholders of $1.5 billion ($4.10 per diluted share), compared with $1.8 billion ($4.47 per diluted share) in 2021. Net sales rose to $21.2 billion from $19.4 billion. Management said price realization and the Building a Better IP initiatives, which delivered $250 million of earnings benefits, offset significant inflation and lower demand. Cash from operations was $2.2 billion and free cash flow was $1.2 billion, and the company returned $1.93 billion to shareholders through $1.26 billion of share repurchases and $673 million of dividends. The company agreed to sell its 50% interest in Ilim S.A. to its joint venture partners for $484 million and received an indication of interest for its JSC Ilim Group shares at $24 million. The 2022 results include a $533 million impairment on the Ilim investment, which is presented as discontinued operations. Once the sale closes, subject to regulatory approval, the company will no longer have investments in Russia. Results also include a $604 million one-time tax benefit from settling the timber monetization tax matter. The filing describes a balance sheet with about $5.6 billion of outstanding indebtedness and credit ratings of BBB (stable) from S&P and Baa2 (stable) from Moody's. For 2023 the company expects cash from operations of $1.9 billion to $2.3 billion, free cash flow of $0.9 billion to $1.1 billion, and capital expenditures of $1.0 billion to $1.2 billion. Management also noted continuing risks from inflation, labor market competition, a USW master agreement expiring in August 2023, and an ongoing Brazilian tax dispute.
Feb 17, 2023
2021
International Paper Annual Report, Year Ended Dec 31, 2021
International Paper Company (NYSE: IP) reported 2021 net earnings attributable to International Paper Company of $1.75 billion ($4.47 per diluted share), compared with $482 million ($1.22 per diluted share) in 2020. Net sales were $19.4 billion versus $17.6 billion in 2020. Adjusted operating earnings were $1.26 billion ($3.20 per diluted share) versus $848 million ($2.14 per diluted share) in 2020. Management said volume was essentially flat as operational and supply chain constraints limited the benefit of solid demand, while price and mix improved and input costs rose sharply. Cash provided by operations was $2.0 billion in 2021, versus $3.1 billion in 2020, and free cash flow was $1.5 billion, versus $2.3 billion. Debt was reduced by $2.5 billion during 2021, and total debt stood at about $5.6 billion at year-end. The company returned $1.6 billion to shareowners, including about $810 million in share repurchases. The October 1, 2021 spin-off of the Printing Papers business as Sylvamo Corporation and the sale of the Kwidzyn, Poland mill reshaped the portfolio into two segments, Industrial Packaging and Global Cellulose Fibers, with a 50% stake in Ilim S.A. The company plans to spend about $1.1 billion on capital expenditures in 2022 and committed to $350 to $430 million of incremental earnings in 2024 under its Building a Better IP initiative. The filing also highlights risks, including the Brazilian tax assessments (about $106 million in tax and $351 million in interest, penalties and fees), a deferred tax liability of $813 million tied to the 2015 timber monetization that is under IRS examination, and continuing COVID-19 uncertainty. The U.S. qualified pension plan was 105% funded, with a surplus of $600 million.
Feb 18, 2022
2020
International Paper Annual Report, Year Ended Dec 31, 2020
International Paper Company reported full-year 2020 net earnings attributable to shareholders of $482 million ($1.22 per diluted share), compared with $1.2 billion ($3.07 per diluted share) in 2019. Adjusted Operating Earnings were $1,107 million ($2.80 per share) versus $1,768 million ($4.43 per share) in 2019. Management described solid earnings and strong cash generation despite the COVID-19 pandemic, with cash provided by operations of $3.1 billion and free cash flow of $2.3 billion. Net sales declined to $20.6 billion from $22.4 billion, driven by lower average sales prices and mix, lower volumes in Printing Papers, and lower equity earnings from Ilim. Pre-tax special items totaled $764 million, including $465 million of net losses on sales and impairments of businesses, most notably a $348 million Brazil Packaging impairment and a $123 million Turkey impairment. The company returned $820 million to shareowners and reduced debt by $1.7 billion during 2020, leaving approximately $8.1 billion of outstanding indebtedness at year-end. Long-term credit ratings were BBB (stable outlook) from S&P and Baa2 (stable outlook) from Moody's. Management announced in December 2020 a plan to spin off its Printing Papers segment as a standalone public company, expected to be completed in late third quarter 2021, and in February 2021 agreed to sell its Kwidzyn, Poland mill for approximately $812 million. Capital spending was $751 million in 2020 and is planned at approximately $800 million for 2021.
Feb 19, 2021
2019
International Paper Annual Report, Year Ended Dec 31, 2019
International Paper Company reported 2019 net sales of $22.4 billion, down from $23.3 billion in 2018, and net earnings attributable to International Paper Company of $1.2 billion ($3.07 per diluted share), compared with $2.0 billion ($4.85 per diluted share) in 2018. Management described 2019 as delivering solid earnings and strong cash generation despite a challenging global environment marked by price pressure in export pulp and containerboard markets, lower export volumes, and inventory headwinds. Cash provided by operations was $3.6 billion and free cash flow was approximately $2.3 billion, which funded $1.3 billion returned to shareholders through about $800 million of dividends and about $500 million of share repurchases, plus roughly $1 billion of debt repaid during the year. The filing shows several one-time items that weighed on 2019 results, including a $159 million India impairment, a $52 million Global Cellulose Fibers goodwill impairment, a $203 million foreign deferred tax valuation allowance, and a €29 million (about $32 million) Italian antitrust fine under appeal. Global Cellulose Fibers posted an operating loss of $(6) million, down from $262 million in 2018. Management expects 2020 earnings to face headwinds from price carryover, higher planned maintenance outage expense and Riverdale conversion costs, and plans capital spending of approximately $1.0 billion in 2020. Total debt was approximately $9.8 billion at December 31, 2019, and the company held long-term credit ratings of BBB (stable outlook) from S&P and Baa2 (stable outlook) from Moody's. Investors should also note the company's exposure to a $4.2 billion nonrecourse bank loan tied to forestland installment notes that matures in the fourth quarter of 2020 and the potential $485 million acceleration of deferred taxes if letter-of-credit banks are downgraded.
Feb 19, 2020
2018
International Paper Annual Report, Year Ended Dec 31, 2018
International Paper Company, a global producer of renewable fiber-based packaging, pulp and paper products, reported 2018 net sales of $23.3 billion, up from $21.7 billion in 2017, and net earnings attributable to the company of $2.0 billion ($4.85 per diluted share), compared with $2.1 billion ($5.13 per diluted share) in 2017. The 2017 figure included a provisional net tax benefit of $1.2 billion ($2.93 per diluted share) from the Tax Cuts and Jobs Act. Business segment operating profit rose to $2.9 billion from $2.1 billion, driven primarily by price and mix improvements. Adjusted operating earnings per diluted share were $5.32 in 2018, versus $3.49 in 2017. Free cash flow was approximately $1.7 billion, and cash provided by operations was $3.2 billion. The company reduced balance sheet debt by about $500 million and returned $1.5 billion to shareholders through about $800 million in dividends and about $700 million in share repurchases. Total indebtedness was approximately $10.7 billion at December 31, 2018. The company completed the transfer of its North American Consumer Packaging business to Graphic Packaging in exchange for a 20.5% interest in the combined business, which generated a pre-tax gain of $488 million in 2018. Management expects 2019 capital spending of about $1.4 billion, roughly $200 million lower than 2018, and expects to receive about $200 million in cash dividends from its Ilim joint venture. Management guided to softer first-quarter 2019 conditions, including lower seasonal demand in North American Industrial Packaging, customer destocking, and heavier planned maintenance outage expense, with first-half 2019 representing nearly 80% of total planned maintenance outage expense for the year. Key risks disclosed include a $1.4 billion portion of debt subject to rating-based interest rate step-ups, up to $538 million in deferred income taxes that could accelerate if letter-of-credit banks are downgraded, and an unresolved Brazilian tax dispute with assessments of approximately $150 million in tax and $380 million in interest and penalties.
Feb 20, 2019
2017
International Paper Annual Report, Year Ended Dec 31, 2017
International Paper Company is a global producer of renewable fiber-based packaging, pulp and paper products, operating in three segments: Industrial Packaging, Global Cellulose Fibers and Printing Papers, plus a 50% equity interest in Ilim Holding S.A. In 2017 net sales were $21.7 billion, up from $19.5 billion in 2016, and net earnings attributable to International Paper were $2.1 billion ($5.13 per diluted share), compared with $904 million ($2.18 per diluted share) in 2016. The results include a provisional net tax benefit of $1.2 billion from the Tax Cuts and Jobs Act and a $354 million charge related to the Kleen Products antitrust settlement. Adjusted operating earnings per diluted share were $3.49 in 2017 versus $3.09 in 2016, and free cash flow was approximately $2.0 billion. Cash provided by operations fell to $1.8 billion from $2.5 billion, reflecting a $1.25 billion voluntary pension contribution. Total debt was approximately $11.2 billion at year-end, and the company held BBB (S&P) and Baa2 (Moody's) long-term ratings, both with stable outlooks. The company expects 2018 capital expenditures of about $1.5 billion and an effective tax rate of approximately 25-27%. On January 1, 2018, International Paper transferred its North American Consumer Packaging business to a subsidiary of Graphic Packaging Holding Company in exchange for a 20.5% ownership interest and the assumption of a $660 million loan, which is reported as a discontinued operation. Management points to strong pricing and mix in 2017, offset by higher input costs, and to continued strong cash generation expected in 2018.
Feb 22, 2018
2016
International Paper Annual Report, Year Ended Dec 31, 2016
International Paper Company reported 2016 net sales of $21.1 billion, down from $22.4 billion in 2015 and $23.6 billion in 2014. Net earnings attributable to International Paper Company were $904 million ($2.18 per diluted share), compared with $938 million ($2.23 per share) in 2015 and $555 million ($1.29 per share) in 2014. Adjusted Operating Earnings, a non-GAAP measure, were $1.4 billion ($3.35 per share) in 2016, versus $1.5 billion ($3.65 per share) in 2015. Management cited margin pressure, price erosion and weaker mix across most businesses, with input costs rising in the back half of the year, partly offset by higher volumes and the December 1, 2016 acquisition of Weyerhaeuser's pulp business for approximately $2.2 billion in cash. Cash generation remained solid, with cash provided by operations of $2.5 billion and Free Cash Flow of $1.9 billion in 2016. Capital spending was $1.3 billion and is targeted at $1.5 billion for 2017. Total debt rose to $11.3 billion at year-end 2016 after $1.9 billion in net borrowings used largely to fund the pulp acquisition. Management said its near-term focus is debt reduction and returning value to shareholders, and the quarterly dividend was increased to $0.46 per share. The filing also flags a January 22, 2017 digester and power house incident at the Pensacola, Florida mill, which will prevent full containerboard production there in the first quarter of 2017. Management estimates the total impact will exceed $50 million, with insurance expected to cover a significant portion of the costs. The company now reports Global Cellulose Fibers as a separate segment, which posted an operating loss of $180 million in 2016.
Feb 22, 2017
2015
International Paper Annual Report, Year Ended Dec 31, 2015
International Paper Company, a global paper and packaging company with operations in North America, Europe, Latin America, Russia, Asia, Africa and the Middle East, reported net sales of $22.4 billion for 2015, down from $23.6 billion in 2014 and $23.5 billion in 2013. Net earnings attributable to International Paper were $938 million ($2.23 per diluted share), compared with $555 million ($1.29 per share) in 2014. Operating Earnings per diluted share were $3.65 in 2015, versus $3.00 in 2014. Results were supported by lower input costs and record performance from the Ilim joint venture, but were offset by lower average sales price realizations and mix, lower sales volumes, and higher maintenance outage costs. Cash provided by operations was $2.6 billion and free cash flow, a non-GAAP measure, was $1.8 billion. Capital spending was $1.5 billion, and the company returned cash through roughly $500 million of share repurchases and a 10% increase in the quarterly dividend to $0.44 per share. The balance sheet carried approximately $9.3 billion of outstanding indebtedness at December 31, 2015, with no borrowings under credit facilities. During 2015 the company issued $2.0 billion of senior notes, used the proceeds to repay about $1.0 billion of notes and make a $750 million voluntary pension contribution, and restructured the 2006 timber monetization. Total debt to capital was 0.71 in the five-year summary. The company reported a $3.6 billion pension benefit liability, and the U.S. pension target population has a $3.0 billion liability for a lump-sum window in 2016 expected to pay about $1.5 billion. Credit ratings were BBB (S&P) and Baa2 (Moody's), both stable outlook. Looking to 2016, the company expects 2016 capital spending of about $1.3 billion, lower pricing in several North American businesses, and completion of the Riegelwood mill conversion to 100% softwood market pulp in the first half of 2016. Special items in 2015 totaled a net loss of $321 million in industry segment operating profit, including a $174 million impairment tied to the sale of the IP-Sun joint venture and $207 million of early debt extinguishment costs.
Feb 25, 2016
2014
International Paper Annual Report, Year Ended Dec 31, 2014
International Paper Company reported net sales of $23.6 billion for 2014, compared with $23.5 billion in 2013 and $21.9 billion in 2012. Net earnings attributable to International Paper Company were $555 million ($1.29 per diluted share), compared with $1.4 billion ($3.11 per share) in 2013 and $794 million ($1.80 per share) in 2012. Operating Earnings per diluted share, a non-GAAP measure, were $3.00 in 2014 versus $3.06 in 2013. Results were burdened by special items, most notably a $554 million charge for the shutdown of the Courtland, Alabama mill, a $276 million charge for early debt extinguishment, and a $100 million goodwill impairment at the Asia Industrial Packaging business. Industrial Packaging operating profit rose to $1.9 billion, while Printing Papers posted an operating loss of $16 million. Cash flow from operations was $3.1 billion in 2014, and free cash flow, a non-GAAP measure, was $2.1 billion, up from $1.8 billion in 2013. The company returned cash to shareholders through approximately $1 billion of share buy-backs and a 14% increase in the quarterly dividend, from $0.35 to $0.40 per share, effective with the fourth-quarter 2014 payment. Total debt was approximately $9.4 billion at year-end, and the company held BBB (S&P) and Baa2 (Moody's) long-term ratings, both with stable outlooks. The filing also highlights a pending risk: about $4.1 billion of third-party loans secured by installment notes from the 2006 forestlands sale mature in September 2015, which could accelerate roughly $1.2 billion of deferred taxes into 2015. For 2015, management expects capital spending of about $1.5 billion, a 2015 effective tax rate of about 33%, and strong free cash flow, while noting an overall challenging macroeconomic environment and continued pricing pressure in European Printing Papers and European Industrial Packaging.
Feb 26, 2015
2013
International Paper Annual Report, Year Ended Dec 31, 2013
International Paper Company reported net sales of $29.1 billion for 2013, up from $27.8 billion in 2012, and net earnings attributable to International Paper Company of $1.4 billion ($3.11 per diluted share), compared with $794 million ($1.80 per share) in 2012. Operating Earnings per diluted share were $3.16 in 2013 versus $2.65 in 2012. Results were affected by special items, including a $512 million goodwill impairment charge covering the xpedx and India Papers businesses and a $770 million tax benefit from the settlement of tax audits. Management cited record cash flow from operations of $3 billion and free cash flow of $1.8 billion, and noted that the company returned cash through a share buy-back program and a 17% increase in the quarterly dividend beginning with the fourth quarter of 2013. The company announced on January 28, 2014 that it will spin off its xpedx distribution business (SpinCo) and merge it with Unisource in a Reverse Morris Trust transaction, with International Paper shareholders owning approximately 51% of SpinCo and the Unisource shareholder approximately 49%. Completion is expected in mid-2014 and is subject to an IRS private letter ruling and other conditions. Total debt at year-end was approximately $9.5 billion, and capital spending for 2013 was $1.2 billion with a planned $1.4 billion for 2014. For 2014, management said it does not anticipate macroeconomic conditions significantly better than 2013 but expects a meaningful increase in year-over-year earnings, citing North American Industrial Packaging optimization and the Ilim joint venture ramp-up. It also expects a 2014 effective tax rate of approximately 33%, and the filing describes a significant first-quarter 2014 negative effect from severe winter weather and input costs.
Feb 27, 2014
2012
International Paper Annual Report, Year Ended Dec 31, 2012
International Paper Company, a global paper and packaging company, reported 2012 net sales of $27.8 billion, up from $26.0 billion in 2011, and net earnings attributable to International Paper Company of $794 million ($1.80 per diluted share), compared with $1.3 billion ($3.03 per share) in 2011. Operating Earnings per diluted share were $2.65 in 2012 versus $3.12 in 2011. The Temple-Inland acquisition, completed February 13, 2012 for approximately $3.7 billion in cash plus about $700 million of assumed debt, was the primary driver of results, and the company generated cash provided by continuing operations of $3.0 billion and free cash flow of $1.6 billion. Management reported that it reduced balance sheet debt by $1.9 billion since the Temple-Inland acquisition closed and increased its annual dividend by 14% to $1.20 per share. The company cited headwinds including lower average sales price realizations and unfavorable mix ($313 million), higher operating costs ($186 million), and higher interest expense of $672 million, versus $541 million in 2011. Net special items and restructuring charges were significant, including $109 million of restructuring and other charges and an $86 million net loss on sales and impairments of businesses. The company outlined 2013 capital spending of about $1.4 billion and an estimated effective tax rate of 31-33%, and noted an agreement to divest the Temple-Inland Building Products business to Georgia-Pacific for $750 million in cash, subject to closing conditions, including Department of Justice review. Balance-sheet items to watch include total debt of about $10.1 billion, a benefit liability for pensions of $4.1 billion, and credit ratings of BBB (stable) from S&P and Baa3 (stable) from Moody's. The filing also flags environmental capital spending expectations of about $90 million in 2013, rising to $285 million in 2014 and $300 million in 2015, largely tied to the EPA's Boiler MACT rule, along with ongoing litigation including the Kleen Products containerboard antitrust suit and Bogalusa-related civil actions.
Feb 26, 2013
2011
International Paper Annual Report, Year Ended Dec 31, 2011
International Paper Company, a global paper and packaging company, reported 2011 net sales of $26.0 billion, up from $25.2 billion in 2010, and net earnings attributable to International Paper Company of $1.341 billion ($3.07 per diluted share), compared with $644 million ($1.48 per share) in 2010. Earnings from continuing operations attributable to the company were $1.292 billion after $63 million of net special items charges. Management cited higher sales price realizations, favorable operating performance and product mix, and lower net interest expense, partly offset by higher input costs of $0.61 per share. Free cash flow was approximately $1.7 billion in 2011, stable with 2010, after capital spending of $1.159 billion. Total debt was $9.9 billion at year-end, and the company closed the Temple-Inland acquisition on February 13, 2012, valued at approximately $4.5 billion, with a Department of Justice condition requiring divestiture of three containerboard mills with about 970,000 tons of capacity. The filing also flags significant uncertainties. The EPA's Boiler MACT rules and a pending Pulp and Paper NESHAP proposal could require significant capital and operating changes, though the company says it cannot yet estimate costs precisely; preliminary environmental control expenditures are about $105 million for 2013 and $260 million for 2014. The U.S. defined benefit pension plans were underfunded by about $2.4 billion on a GAAP basis, and the company made a $300 million voluntary contribution in 2011. Capital spending for 2012 is targeted at about $1.5 billion, including Temple-Inland facilities. The company reported a credit rating of BBB (stable) from S&P and Baa3 (stable) from Moody's at year-end, and a 2012 effective tax rate estimate of 33-35%.
Feb 27, 2012
2010
International Paper Annual Report, Year Ended Dec 31, 2010
International Paper Company, a global paper and packaging company with primary markets and manufacturing operations in North America, Europe, Latin America, Russia, Asia and North Africa, reported net sales of $25.18 billion in 2010, up from $23.37 billion in 2009, and net earnings attributable to International Paper Company of $644 million ($1.48 per diluted share), compared with $663 million ($1.55 per share) in 2009. Management describes 2010 as a transition year in which the company emerged from a recession. Earnings per share before special items were $2.05, more than twice the 2009 level of $0.88. Results were held back by a $344 million net loss from special items and by higher energy and raw material costs of $548 million, which were more than offset by higher average prices of $798 million and higher sales volumes of $269 million. Industry segment operating profits were $1.69 billion, down from $2.36 billion in 2009, which included alternative fuel mixture credits. Cash flow and balance sheet items were central to the filing. Cash provided by operations was $1.63 billion, and free cash flow before dividends was approximately $1.75 billion. The company made voluntary contributions of $1.15 billion to its U.S. pension plan and reduced debt, with net debt reduction of $383 million. Long-term debt was $8.36 billion at year-end, and total shareholders' equity was $6.83 billion. Capital spending for continuing operations was $775 million in 2010, with 2011 capital spending targeted at $1.2 to $1.3 billion. The company reported committed credit facilities of $2.5 billion and long-term credit ratings of BBB (S&P) and Baa3 (Moody's), both with stable outlooks. Looking ahead, management expects 2011 to be a year of accelerating improvement, with price realizations and volumes expected to improve as the global economy recovers, though input costs are rising. The company also flagged environmental regulation as a risk, noting that EPA Boiler MACT rules are expected by February 21, 2011, and that preliminary environmental control expenditure estimates are approximately $300 million for 2012 and $350 million for 2013. Alternative fuel mixture and cellulosic bio-fuel credits for 2009 remain under evaluation, and the company stated it could repay some of the $0.50 credit cash received.
Feb 25, 2011
2009-A
International Paper Annual Report (Amendment), Year Ended Dec 31, 2009
This Form 10-K/A (Amendment No. 1) from International Paper Company, dated March 26, 2010, amends the Company's Annual Report on Form 10-K for the year ended December 31, 2009, which was originally filed with the SEC on February 25, 2010. The sole purpose of the amendment is to correct printing errors in the exhibit listing of the Original Filing. It restates Part IV, Item 15, Exhibits and Financial Statement Schedules, in its entirety and does not include the full Form 10-K. The Company states that no other changes were made and that the Original Filing continues to speak as of its own filing date. The amended exhibit index lists corporate governance documents including the Restated Certificate of Incorporation and By-laws (as amended through May 11, 2009), indentures and supplemental indentures with The Bank of New York and The Bank of New York Mellon, and a range of management compensation arrangements such as the 2009 Management Incentive Plan, 2009 Incentive Compensation Plan, restricted stock and restricted stock unit award forms, and change of control agreements. Credit and financing arrangements are also listed, including a 3-Year Credit Agreement dated November 20, 2009 with JPMorgan Chase Bank, N.A. as administrative agent, a Second Amended and Restated Credit and Security Agreement dated March 13, 2008 relating to Red Bird Receivables, LLC, and a Loan Agreement dated March 12, 2009 involving International Paper Investments (Luxembourg) S.à r.l. The filing marks the exhibits that are filed herewith as Exhibits 10.2, 10.8, 10.9, 10.10, 10.17, 31.1, 31.2 and 32, and it states that Exhibits 11, 12, 21 and 23 were previously filed with the Original Filing. Exhibits 101 (XBRL) were furnished with the Original Filing. The amendment is signed by Maura Abeln Smith as attorney-in-fact on March 26, 2010.
Mar 26, 2010
2009
International Paper Annual Report, Year Ended Dec 31, 2009
International Paper Company reported net sales of $23.4 billion for 2009, compared with $24.8 billion in 2008 and $21.9 billion in 2007. Net earnings attributable to International Paper Company totaled $663 million ($1.55 per diluted share) in 2009, including $1.4 billion of after-tax alternative fuel mixture credits and $853 million of after-tax restructuring and other charges, compared with a net loss of $1.3 billion in 2008, which included a $1.8 billion goodwill impairment charge. Industry segment operating profits rose to $2.4 billion from $1.4 billion in 2008. Management stated that the company generated record cash flow from operations of $4.7 billion, enabling it to reduce long-term debt by $3.1 billion while increasing cash balances by approximately $800 million. The company incurred 3.6 million tons of downtime in 2009, including 1.1 million tons tied to shutting down production capacity in its North American mill system, and recorded plant closure charges for mills at Albany, Oregon, Franklin, Virginia and Pineville, Louisiana. Management expects these actions to yield annual savings of approximately $650 million and to support higher operating rates, lower fixed costs and lower payroll costs in 2010. Management stated it expects improved earnings versus 2009 in all major businesses, though it described first-quarter 2010 operations as likely to be challenging due to seasonality, poor harvesting weather and rising fiber costs. Capital spending is targeted at $800 million for 2010. At December 31, 2009, the company held long-term credit ratings of BBB (negative outlook) from S&P and Baa3 (negative outlook) from Moody's, had $9.0 billion of total debt, and reported a total-debt-to-capital ratio of 43.3% against a covenant limit of less than 60%. Liquidity totaled approximately $1.9 billion in cash and $2.5 billion of committed facilities. Its U.S. qualified pension plan was underfunded, with the projected benefit obligation for U.S. defined benefit plans approximately $2.8 billion higher than plan assets, and the company expects no required 2010 cash contribution to that plan.
Feb 25, 2010
2008
International Paper Annual Report, Year Ended Dec 31, 2008
International Paper Company, a global paper and packaging company, reported a 2008 net loss of $1.28 billion ($3.05 per share), compared with net earnings of $1.17 billion ($2.70 per share) in 2007. Net sales rose to $24.83 billion from $21.89 billion, driven largely by the August 2008 acquisition of Weyerhaeuser's Containerboard, Packaging and Recycling (CBPR) business for approximately $6 billion in cash. The loss was driven by special items, most notably goodwill impairment charges totaling about $1.78 billion and restructuring and other charges of $370 million. Industry segment operating profits fell to $1.39 billion from $1.90 billion, as higher energy and raw material costs ($721 million) and higher distribution costs ($135 million) more than offset higher average prices ($570 million). The company reported $2.67 billion of cash provided by operations, its strongest figure in the filing's discussion, and capital spending of $1.0 billion, with a 2009 target of about $700 million. Balance sheet leverage increased substantially. Long-term debt reached $11.25 billion at year-end 2008, versus $6.35 billion a year earlier, and common shareholders' equity fell to $4.17 billion from $8.67 billion. The company stated it had $1.6 billion of debt due in 2009, including a euro 500 million term loan it was negotiating to refinance, and it reported ratings of BBB (negative outlook) from S&P and Baa3 (negative outlook) from Moody's. Management said it was in compliance with its debt covenants and held about $2.5 billion of unused committed bank credit facilities. management guided that first-quarter 2009 operating profit would be below fourth-quarter 2008 levels, reflecting weak demand and about one million tons of lack-of-order downtime taken in the fourth quarter. The filing also reports a $3.2 billion pension benefit liability under SFAS 158 and notes that the company expects no obligation to fund its plans in 2009.
Feb 26, 2009
2007
International Paper Annual Report, Year Ended Dec 31, 2007
International Paper Company's 2007 results were driven by significantly higher paper and packaging price realizations, with net sales of $21.89 billion (compared with $21.995 billion in 2006) and net earnings of $1.168 billion, or $2.70 per diluted share. Industry segment operating profits rose to $2.423 billion from $2.074 billion, with the company citing $461 million of higher average price realizations. Earnings from continuing operations before income taxes and minority interest were $1.654 billion, down from $3.188 billion in 2006, which included large 2006 Transformation Plan forestland gains. Management expects demand for North American printing papers and packaging to remain steady in early 2008, but warns that wood, energy and transportation costs are rising and that first-quarter 2008 earnings are expected to be lower than fourth-quarter 2007 earnings, excluding land sales. The balance sheet and cash flow picture strengthened over the year. Cash provided by continuing operations was $1.948 billion, against $1.010 billion in 2006, which was net of a $1.0 billion voluntary pension contribution. The company repurchased 33.6 million shares for about $1.2 billion, paid $436 million in dividends, and reduced debt by $875 million in retirements. Long-term debt fell to $6.353 billion, and total common shareholders' equity rose to $8.672 billion. Capital spending from continuing operations was $1.288 billion, with 2008 capital spending targeted at about $1.1 billion. Ratings were BBB (S&P) and Baa3 (Moody's), both with stable outlooks. Strategically, the company completed most of its Transformation Plan divestitures in 2007, including Arizona Chemical, Kraft Papers, Beverage Packaging and most of Wood Products. It also acquired Central Lewmar for $189 million, obtained the Luiz Antonio mill in Brazil through a non-cash exchange, and bought a 50% equity interest in Ilim Holding S.A. in Russia for approximately $620 million. Forest Products profits fell to $471 million from $678 million, reflecting the 5.6 million acres of forestland sold in 2006.
Feb 29, 2008
2006
International Paper Annual Report, Year Ended Dec 31, 2006
International Paper Company's 2006 results improved on stronger pricing, higher sales volumes and lower operating costs. Net sales were $21.995 billion in 2006 compared with $21.7 billion in 2005, and net earnings were $1.050 billion ($2.18 per diluted share), down from $1.100 billion ($2.21 per diluted share) in 2005. Earnings from continuing operations rose to $1.282 billion from $684 million, but this included $4.8 billion of gains on Transformation Plan forestland sales, partly offset by $1.4 billion of net losses on sales and impairments of businesses and $759 million of goodwill impairments. Industry segment operating profit was $2.074 billion, up from $1.622 billion in 2005. The company is executing its Transformation Plan to focus on two platform businesses, Uncoated Papers (including Distribution) and Packaging. Through December 31, 2006, it had received about $9.7 billion of estimated divestiture proceeds from an expected $11.3 billion, and it reduced debt by $6.2 billion since the plan was announced. It also repurchased 39.7 million shares for about $1.4 billion and made a $1.0 billion voluntary pension contribution. Management expects first-quarter 2007 earnings from continuing operations to be somewhat lower than in the fourth quarter of 2006, mainly because of lower real estate sales. Liquidity remained supported by about $3.0 billion of committed credit facilities and long-term credit ratings of BBB (S&P) and Baa3 (Moody's), both with stable outlooks. Capital spending was $1.0 billion in 2006 and is targeted at about $1.2 billion in 2007. Key risks identified include raw material and energy costs, pricing, demand, international exposure in Brazil, Russia, Poland and China, and ongoing legal reserves for siding and roofing settlements.
Feb 28, 2007
2005-A
International Paper Annual Report (Amendment), Year Ended Dec 31, 2005
This Form 10-K/A (Amendment No. 1) for fiscal 2005 was filed March 7, 2006, to correct a clerical error in which Deloitte & Touche LLP's audit opinions contained the word "tentative" beside the signature line. The filing states that the amendment is otherwise identical to the Form 10-K filed March 6, 2006. For 2005, International Paper Company reported net sales of $24.1 billion (versus $23.4 billion in 2004) and net earnings of $1.1 billion, or $2.21 per diluted share, compared with a net loss of $35 million in 2004. Earnings from continuing operations were $859 million. Management said higher energy, wood, caustic soda and other raw material costs reduced industry segment operating profits by $586 million, and lower sales volumes, including lack-of-order downtime, were also a negative factor. Results were supported by higher average prices, cost reduction initiatives, and special items, including a $258 million pre-tax credit for net insurance recoveries related to hardboard siding and roofing litigation and a $446 million net tax benefit. The company announced a Transformation Plan on July 19, 2005, to focus on two platform businesses, Uncoated Papers (including the xpedx distribution business) and Packaging, while evaluating the sale or spin-off of other businesses and portions of its U.S. forestlands. The Carter Holt Harvey Limited sale was completed in the third quarter of 2005. Cash provided by continuing operations was $1.5 billion, capital spending was $1.2 billion, and net debt was reduced by approximately $1.7 billion. The company reported approximately $3.2 billion of committed liquidity. Moody's downgraded its long-term debt from Baa2 to Baa3 during 2005, and at year-end the company held BBB (negative outlook) from Standard & Poor's and Baa3 (stable outlook) from Moody's. For 2006, management expects first-quarter operating profits to be about flat with the fourth quarter of 2005, with improvement expected later in the year from announced price increases, industry capacity reductions, and some declines in natural gas and wood costs. Management also anticipates U.S. pension expense of approximately $370 million in 2006, up from $243 million in 2005, and an effective tax rate of approximately 30%.
Mar 7, 2006
2005
International Paper Annual Report, Year Ended Dec 31, 2005
International Paper Company, a global forest products, paper and packaging company, reported 2005 net sales of $24.10 billion, up from $23.36 billion in 2004, and net earnings of $1.10 billion ($2.21 per diluted share) versus a net loss of $35 million in 2004. Earnings from continuing operations were $859 million, but the filing states that included an incremental benefit of $497 million versus 2004 from special items; excluding this benefit, earnings were $94 million lower than in 2004. Higher energy, wood and raw material costs ($586 million) and lower sales volumes ($251 million) were the principal headwinds, partly offset by higher average prices ($478 million) and cost reductions. The company is executing a Transformation Plan announced July 19, 2005, to focus on two platform businesses, uncoated papers (including xpedx distribution) and packaging, while evaluating sales or spin-offs of other businesses and possibly U.S. forestlands, with decisions anticipated for some in 2006. The Carter Holt Harvey sale in the third quarter of 2005 produced a $361 million after-tax gain. Net debt fell by approximately $1.7 billion in 2005, and cash from continuing operations declined to $1.5 billion from $2.1 billion. Capital spending of $1.2 billion is targeted for 2006, and management expects to use free cash flow to pay down debt and return value to shareholders. Credit and pension items to note: Moody's downgraded the company's long-term debt from Baa2 to Baa3 in 2005, S&P rates it BBB with a negative outlook, and U.S. pension expense rose to $243 million in 2005 from $111 million in 2004, with about $370 million expected in 2006. The company also reported $3.2 billion of unused committed credit facilities and recorded a $627 million tax benefit from an IRS audit settlement in 2005.
Mar 6, 2006
2004
International Paper Annual Report, Year Ended Dec 31, 2004
International Paper Company's 2004 Form 10-K, filed March 10, 2005, reports net sales of $25.5 billion for 2004, up from $24.0 billion in 2003, and a net loss of $35 million ($0.07 per share), compared with net earnings of $302 million in 2003. Earnings from continuing operations rose to $478 million from $294 million. The net loss reflects a $513 million loss from discontinued operations, mainly the $711 million after-tax charge tied to the sale of Weldwood of Canada Limited. Industry segment operating profit increased to $2.1 billion from $1.8 billion, driven by higher sales volumes, higher average prices, and cost reduction initiatives, partly offset by higher energy and raw material costs. Cash provided by operations was $2.4 billion, up from $1.8 billion. Capital spending from continuing operations was $1.3 billion, and the company reduced debt by approximately $900 million in 2004, with a further $750 million repaid as of February 2005. Management targets consolidated debt of about $12 billion by the end of 2006 and expects 2005 capital expenditures of about $1.4 billion. The company reports approximately $3.2 billion of committed liquidity and holds long-term credit ratings of BBB (negative outlook) from Standard & Poor's and Baa2 (negative outlook) from Moody's. Management expects a seasonally slow first quarter of 2005, with improving price realizations and demand, while wood, chemical, and energy costs are expected to remain high. Pension expense is projected to rise to approximately $210 million for U.S. plans in 2005, and the 2005 effective income tax rate is estimated at about 33%. Ongoing litigation includes the exterior siding and roofing matters, with net reserves of $259 million at year-end 2004, and a pending judgment in the insurance indemnification lawsuit.
Mar 10, 2005
2003
International Paper Annual Report, Year Ended Dec 31, 2003
International Paper Company, a global forest products, paper and packaging company, reported 2003 net sales of $25.18 billion, up from $24.98 billion in 2002, and net earnings of $302 million ($0.63 per share), compared with a net loss of $880 million in 2002. Earnings before extraordinary items and cumulative effect of accounting changes rose to $315 million from $295 million. Industry segment operating profit declined to $1.80 billion from $1.94 billion, as higher energy and raw material costs ($270 million) and lower average prices ($75 million) outweighed cost reduction gains ($245 million). Restructuring and other charges fell to $298 million from $695 million, and interest expense, net, decreased to $766 million from $783 million. Cash provided by operations was $1.82 billion in 2003, and capital spending was $1.17 billion. Management expects 2004 capital spending of about $1.3 billion and anticipates a seasonally slow first quarter, with price increases announced in containerboard, uncoated free sheet, pulp and certain bleached board grades. The company repaid high-coupon debt through refinancing, with about $2.5 billion of debt scheduled for refinancing or repayment in 2004, including $1.1 billion of zero-coupon convertible debentures that holders may require the company to repurchase in June 2004. Standard & Poor's long-term rating was BBB with negative outlook, and Moody's was Baa2 with stable outlook. Litigation remains significant. Exterior siding reserves totaled $387 million at December 31, 2003, and the company is pursuing insurance recoveries, including a jury finding in July 2003 that $383 million of its settlement payments are covered by its policies. A settlement reached in February 2004 requires the company to pay a third party up to $95 million of future insurance proceeds.
Mar 12, 2004
2002
International Paper Annual Report, Year Ended Dec 31, 2002
International Paper Company, a global forest products, paper and packaging company, reported a 2002 net loss of $880 million ($1.83 per share), compared with a net loss of $1.2 billion ($2.50 per share) in 2001 and net earnings of $142 million ($.32 per share) in 2000. The results include a $1.2 billion ($2.44 per share) transitional goodwill impairment charge under SFAS No. 142, a $450 million pre-tax charge for additional exterior siding legal reserves, and a $1.5 billion after-tax direct charge to equity related to qualified pension plans, the latter two described as having no adverse effect on existing debt covenants. Before special items and the cumulative effect of the accounting change, earnings were $540 million ($1.12 per share), up from $214 million ($.44 per share) in 2001, which management attributes mainly to cost reduction initiatives and operational efficiencies despite lower average prices. Net sales declined to $24.98 billion from $26.36 billion in 2001 and $28.18 billion in 2000, primarily reflecting divested businesses and lower average prices. Cash provided by operations was $2.1 billion in 2002, and capital spending was $1.0 billion, against an expected $1.3 billion in 2003. Total debt to capital rose to 55.1% at year-end 2002 from 50.1% in 2001, and long-term debt stood at $13.04 billion. Management expects a slow but steady improvement in 2003 following a weak first quarter, with higher energy costs and an expected effective tax rate of approximately 31%. The company reports ongoing asbestos-free exposure to exterior siding litigation tied to former Masonite products, with net reserves of $507 million at December 31, 2002, and an antitrust class action over linerboard pricing that is in discovery. Management also reports that International Paper has moved to third place in a peer group of eight companies on operating return on investment in 2002, from the bottom quartile in 1999.
Feb 28, 2003
2001-A
International Paper Annual Report (Amendment), Year Ended Dec 31, 2001
International Paper Company, a global forest products, paper and packaging company with primary operations in the United States, Canada, Europe, the Pacific Rim and South America, reported 2000 net sales of $28.18 billion, up from $24.57 billion in 1999, primarily due to the Champion International acquisition completed June 20, 2000. Operating profit rose to $2.71 billion from $1.81 billion. However, after $969 million of pre-tax special charges (largely $824 million for asset shutdowns of excess internal capacity), along with $541 million of after-tax impairment losses on businesses to be sold and an extraordinary net loss, net earnings were $142 million, or $0.32 per share, compared with $183 million, or $0.44 per share, in 1999. Earnings before special and extraordinary items were $969 million, or $2.16 per share. Management highlighted a $5 billion divestiture program, including timberlands, intended to be largely completed by the end of 2001, with about $1.2 billion of proceeds realized as of March 1, 2001. Capital spending was $1.4 billion in 2000 and is budgeted at $1.2 billion for 2001, below depreciation and amortization of $1.9 billion. Total debt rose to $14.8 billion at year-end 2000 following the acquisitions, and Moody's lowered the company's long-term debt rating to Baa1 at the time of the Champion deal. The company also disclosed ongoing exposure to Masonite hardboard siding claims, with reserves of $92 million net of expected insurance recoveries, and pending linerboard and high-pressure laminate antitrust suits. For investors, the filing shows a materially larger but more leveraged company, with management targeting a 400 basis point improvement in return on investment through non-price improvements by the end of 2002 and a Champion merger synergy target of $500 million by the end of 2001.
Jan 16, 2002
2000-A
International Paper Annual Report (Amendment), Year Ended Dec 31, 2000
This Amendment No. 2 to International Paper Company's annual report for the fiscal year ended December 31, 2000 amends only Part IV, Item 14. It deletes the referenced exhibits in their entirety and replaces them with the exhibits set forth in the amendment. Items and exhibits not expressly changed remain as stated in the original filing. The filing identifies the company as a New York corporation headquartered at 400 Atlantic Street, Stamford, Connecticut, with 482,973,450 common shares outstanding and 1,194,696 shares in treasury as of March 16, 2001. The aggregate market value of common stock held by non-affiliates on that date was $17,250,072,809 (about $17.25 billion). The filing shows the company's 2000 activity in the context of two merger agreements: the February 16, 2000 agreement to acquire Shorewood Packaging Corporation, and the May 12, 2000 agreement with Champion International Corporation. Its Form 8-K reports during 2000 and early 2001 covered quarterly earnings, the closure of three mills and the scaling back of one mill, merger synergies with Champion International, and the status of capacity rationalizations and realignment initiatives. The consolidated financial statements are incorporated by reference from the 2000 Annual Report to Shareholders, which is listed as Exhibit 13, and the filing lists Arthur Andersen LLP and PricewaterhouseCoopers LLP as the company's auditors. For investors, the most useful content in this amendment is the exhibit index, which lists the company's governing documents, debt indentures and credit agreements, compensation and incentive plans, and the Champion and Shorewood merger agreements. The operating and financial detail for 2000 is in the Annual Report to Shareholders, which this filing references rather than reproduces.
Jan 16, 2002
2000
International Paper Annual Report, Year Ended Dec 31, 2000
International Paper Company, a global forest products, paper and packaging company, reported 2000 net sales of $28.18 billion, up from $24.57 billion in 1999, primarily due to the Champion International acquisition completed June 20, 2000. Operating profit rose to $2.71 billion from $1.81 billion, but net earnings after special and extraordinary items were only $142 million ($0.32 per share), down from $183 million in 1999. Earnings before special and extraordinary items were $969 million ($2.16 per share), compared with $551 million ($1.33 per share) in 1999. Special charges after taxes and minority interest totaled $601 million in 2000, mainly for asset shutdowns of excess capacity, and extraordinary items were a net loss of $226 million, including impairment losses on businesses to be sold. Management is executing a divestiture program now estimated at about $5 billion in gross proceeds by the end of 2001, with roughly $1.2 billion realized as of March 1, 2001. The company closed or announced closures of several mills, including Mobile, Alabama and Lock Haven, Pennsylvania, removing over 1.2 million tons of annual capacity. Capital spending was $1.4 billion in 2000 and is budgeted at $1.2 billion for 2001, below depreciation and amortization of $1.9 billion. Total debt reached $14.8 billion, and the company reported that Moody's lowered its long-term debt rating to Baa1 at the time of the Champion acquisition. Energy costs rose more than $200 million above 1999 levels, and the company cited an economic slowdown in the second half of 2000 that reduced demand. The filing also details ongoing legal and environmental matters, including Masonite hardboard siding reserves of $92 million net of insurance recoveries, linerboard price-fixing class actions, and high-pressure laminate antitrust suits. Management stated that these matters are not expected to have a material adverse effect on consolidated financial position or results of operations, though the company noted that additional hardboard siding reserve additions are reasonably possible.
Mar 26, 2001
1998
International Paper Annual Report, Year Ended Dec 31, 1998
International Paper Company's 1998 10-K reports net sales of $19.5 billion, down 3% from $20.1 billion in 1997 and 1996, with sales declining on lower volumes and prices and a weaker New Zealand dollar. Net earnings were $236 million, or $.77 per share, including special items that reduced net earnings by $72 million; earnings before special items were $308 million, or $1.00 per share. Operating profit was $1.1 billion in both 1998 and 1997. Return on investment was 3.2% before special items. Management states that current financial returns are not satisfactory and continues to pursue company-wide business improvement initiatives. The most significant event disclosed is the pending merger with Union Camp Corporation, valued at approximately $6.6 billion including assumed debt, under which Union Camp shareholders will receive International Paper common shares worth $71 per Union Camp share. The merger is subject to shareholder approval, is expected to close early in the second quarter of 1999 as a pooling of interests, and is projected to yield about $300 million in annual cost savings, with about $40 million of direct merger expenses and additional one-time restructuring costs in 1999. Management expects continued sizable challenges from global economic conditions and excess capacity, with announced price increases for linerboard, uncoated papers and pulp in the first quarter of 1999. The balance sheet shows total assets of $26.4 billion, long-term debt of $6.4 billion, and common shareholders' equity of $8.9 billion at year-end 1998. Cash provided by operations was $1.7 billion and capital spending was $1.0 billion, with 1999 capital spending budgeted at just under $1.0 billion. Standard & Poor's downgraded the company's long-term debt rating from A- to BBB+ during 1998. Litigation over Masonite hardboard siding has been settled, with reserves of $129 million at December 31, 1998.
Mar 31, 1999
1997-A
International Paper Annual Report (Amendment), Year Ended Dec 31, 1997
International Paper Company's Form 10-K/A for fiscal year 1997 reports a net loss of $151 million, or $.50 per share, after special items, compared with net earnings of $303 million ($1.04 per share) in 1996. Net sales were $20.1 billion, essentially flat with 1996, as lower pricing for most products offset stronger demand. Before special items, 1997 earnings were $310 million, or $1.03 per share, versus $434 million, or $1.49 per share, in 1996. Special items in 1997 included a $535 million pre-tax business improvement charge, a $150 million legal reserve provision for the Masonite siding class action, a $125 million charge for anticipated losses on the sale of remaining imaging businesses, and a $170 million gain on redemption of West Coast partnership interests. Management stated that current financial returns were not satisfactory. Return on investment was 3.0% before special items in 1997, compared with 3.6% in 1996 and 8.4% in 1995. The company is pursuing a plan to sell over $1 billion of assets or businesses that do not meet return requirements or market leadership, and it expects to complete those sales by midyear 1998. Capital spending was reduced to $1.1 billion in 1997 and is budgeted at a similar level for 1998. Cash provided by operations declined to $1.2 billion from $1.7 billion in 1996. The company reported that its financial condition remained strong, with the ratio of debt to total capital at 39% in 1997, and that cash flow from operations is expected to fund capital expenditures, debt service and dividends in 1998. Management noted that the Asian economic downturn had begun to weaken pulp and some paper prices and created uncertainty for 1998. The filing also describes ongoing environmental compliance costs tied to the EPA Cluster Rule, with a preliminary estimate of approximately $350 million for environmental appropriations in 1999 and 2000.
Mar 29, 1999
1997
International Paper Annual Report, Year Ended Dec 31, 1997
International Paper Company (Purchase, N.Y.) reported a 1997 net loss of $151 million, or $.50 per share, after special items, compared with net earnings of $303 million, or $1.04 per share, in 1996. Excluding special items, 1997 net earnings were $310 million, or $1.03 per share, versus $434 million, or $1.49 per share, in 1996. Net sales were $20.1 billion, essentially flat with 1996, as lower pricing for most products offset stronger demand. Return on investment before special items was 3.0% in 1997, compared with 3.6% in 1996. Management stated that current financial returns are not satisfactory and described a business improvement program, including a $535 million pre-tax charge recorded in June 1997 and an additional $125 million charge in December 1997 tied to the sale of the imaging businesses. The company is focused on narrowing its portfolio. It planned to sell over $1 billion of assets or businesses in 1998, with the proceeds used primarily to reduce debt, and reported $322 million of divestiture proceeds in 1997. Capital spending fell to $1.1 billion in 1997 from $1.4 billion in 1996 and is expected to be about $1.1 billion in 1998. Cash provided by operations declined to $1.2 billion from $1.7 billion. Long-term debt was $7.2 billion at year-end 1997, and the ratio of debt to total capital was 39%. Pending transactions include a proposed merger with Weston Paper and Manufacturing Company, valued at $232 million in shares, and a joint venture with Olmuksa in Turkey. Legal matters include the Masonite hardboard siding class action, which received final court approval on January 15, 1998. Management believes the settlement will not have a material adverse effect on its financial position or results of operations. The Cluster Rule environmental regulations are expected to require about $230 million in additional capital spending over 1998 to 2000.
Mar 30, 1998
1996
International Paper Annual Report, Year Ended Dec 31, 1996
International Paper Company, a New York corporation headquartered in Purchase, N.Y., filed this annual report on Form 10-K for the fiscal year ended December 31, 1996. The company reported 1996 net sales of $20.1 billion, up slightly from $19.8 billion in 1995, with the Federal Paper Board merger and Carter Holt Harvey acquisitions offsetting weak pricing across major product lines. Net earnings fell to $303 million, or $1.04 per share, from $1.15 billion, or $4.50 per share, in 1995. Results after special items include a $592 million pre-tax gain on the sale of a partnership interest, offset by a $515 million restructuring and asset impairment charge and a $165 million write-down of the Scitex investment. Excluding these items, net earnings before special items were $434 million, or $1.49 per share. Management's letter describes 1996 as a year that did not meet expectations and says improving performance, including a 12 percent average return on investment over a business cycle as the goal, will be the critical objective for 1997. Balance sheet and cash flow data show total assets of $28.25 billion and common shareholders' equity of $9.34 billion at year-end 1996. Cash provided by operations was $1.74 billion, compared with $2.25 billion in 1995. Capital spending was $1.39 billion in 1996 and is budgeted at about $1.2 billion for 1997, below forecast depreciation and amortization of $1.3 billion. Management states its first priority for excess cash is debt repayment. The debt-to-capital ratio was 38.9 percent in 1996. Dividends were $1.00 per share for 1996. The filing also details environmental and legal matters. Environmental capital expenditures were $130 million in 1996, with about $140 million expected in 1997. The company cites a preliminary estimate of $350 million to $580 million for additional environmental appropriations in 1998 through 1999. The Masonite hardboard siding class action remains pending in Alabama, with a Phase II trial set for July 1997. Management believes that none of the pending proceedings will have a material adverse effect on its financial position or results of operations.
Mar 28, 1997
1993
International Paper Annual Report, Year Ended Dec 31, 1993
International Paper Company reported 1993 net sales of $13.69 billion, up slightly from $13.60 billion in 1992, and net earnings of $289 million, or $2.34 per share, compared with $86 million, or $.71 per share, in 1992. Those 1993 results include a $25 million charge to revalue deferred tax balances for the increase in the U.S. federal income tax rate; before that charge, net earnings were $314 million, or $2.54 per share. Operating profit rose to $832 million from $570 million, though 1992 included $336 million of restructuring and other charges. Results diverged by segment: Forest Products set a record with operating profit of $445 million, while Printing Papers posted an operating loss of $122 million, reflecting weak European markets and prices. Packaging operating profit fell to $188 million and Specialty Products rose to $263 million. Cash provided by operations was $929 million in 1993, down from $1.08 billion in 1992. Capital spending was $954 million in 1993 and is expected to exceed $1.1 billion in 1994, with major projects focused on printing papers and packaging. The debt-to-capital ratio was 38.7% at year-end 1993, and the company paid dividends of $1.68 per share. The filing describes ongoing environmental capital programs, with $160 million expected in 1994 and an estimated $700 million to $1.5 billion needed for future Cluster Rulemaking and Great Lakes Initiative compliance. It also discloses substantial dioxin-related litigation in Mississippi, where plaintiffs seek total compensatory damages of approximately $1.0 billion and punitive damages of approximately $8.4 billion. The company believes these proceedings will not have a materially adverse effect on its consolidated financial position or results of operations. In March 1994, a subsidiary acquired about half of Brierley Investments' holdings in Carter Holt Harvey, raising International Paper's ownership to 24%. Management expects 1994 improvement in printing papers and packaging as prices recover and European economies improve, while Petroleum earnings are expected to decline on lower oil prices.
Mar 31, 1994