MEMPHIS (AP) – International Paper Co., the paper and packaging company, said Thursday, July 25, that its second-quarter net income nearly doubled as it raised its prices for its boxes.
The earnings results topped analysts' expectations, and its shares briefly touched their highest level in more than 13 years.
(Daily News File/Lance Murphey)
Chairman and CEO John Faraci said the company expanded its profit margins and got a lift from seasonally stronger volumes and a solid operating performance.
"As we move into the second half of the year, the company is well-positioned to significantly improve earnings and free cash flow for the balance of 2013," he said in a statement.
The Memphis-based company said that it earned $259 million, or 57 cents per share, in the three months ending June 30. That's up from $134 million, or 31 cents per share, in the same period a year ago.
Excluding restructuring charges and other one-time items, the company said that it earned 64 cents per share. Analysts, on average, expected earnings of 56 cents per share, according to FactSet.
Revenue rose 4 percent to $7.34 billion in the second quarter from $7.07 billion a year ago. Analysts expected revenue of $7.4 billion.
Industrial packaging revenue rose 9 percent to $3.8 billion in the second quarter from $3.5 billion a year ago. The company said it was able to raise prices for boxes and containerboard in North America and box shipments increased. It also lowered operating costs.
Revenue at its printing papers business rose 2 percent to $1.5 billion and rose 10 percent to $855 million at its consumer packaging unit.
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