Financial Data and Key Metrics - Q1 2024 earnings were generally in line with the outlook, representing a trough due to seasonally low volumes, higher OCC costs, and the majority impact from 2023 sales price index declines [6] - Earnings were negatively impacted by approximately $38 million from the January winter freeze and $14 million from a fire at the Ixtac, Mexico box plant [6] - Free cash flow for the quarter was $144 million, compared to $193 million in Q1 2023, which included a final IRS settlement [8] - Operating earnings per share were $0.17, down from $0.41 in Q4 2023, with $0.10 per share impact from the winter freeze and fire [9] - Price and mix benefits contributed $0.14 per share, partially offset by prior sales price index declines [9] - Volume was unfavorable by $0.08 per share due to seasonally low shipments and the winter storm [9] - Operations and costs were unfavorable by $0.13 per share, including $0.07 per share from the winter freeze and fire [10] Business Line Data and Key Metrics Industrial Packaging - Price and mix benefits contributed approximately $110 million, partially offset by $53 million from prior sales price index declines [11] - Volume was lower due to seasonally low shipments and the January freeze [12] - Operations and costs included a $34 million unfavorable impact from the winter freeze and fire, with additional cost inflation and lower fixed cost absorption [13] - Demand trends show eCommerce up mid-single digits year-over-year, with stable food and beverage demand and improving fresh food and protein segments [14] - Industry box demand is expected to grow 2% to 3% in 2024 [15] Global Cellulose Fibers - Price and mix benefits were driven by higher absorbent pulp mix and reduced commodity grades [16] - Volume was flat as improved demand for absorbent pulp offset lower sales of commodity grades [16] - Operations and costs were unfavorable due to the winter freeze and cost inflation, partially offset by $12 million in fixed cost savings from mill closures [16] - Planned maintenance outages were lower by $10 million, but a $24 million outage at the Georgetown white papers machine impacted earnings [17] Market Data and Key Metrics - North American packaging demand is stable to improving, with eCommerce showing resilience and food and beverage segments remaining stable [14] - The produce segment was flat in Q1 but expected to recover in Q2, while the protein segment is improving following supply reductions [15] - The beverage segment remains under pressure due to reduced consumption of specialty beverages and bottled beer [15] Company Strategy and Industry Competition - The company is focused on accelerating margin improvement and driving profitable growth through strategic initiatives, including the Box Go-to-Market strategy and mill optimization [7] - A combination with DS Smith is seen as a catalyst for creating significant value for shareholders [7] - Investments are being made to strengthen packaging businesses and improve capabilities to serve customer needs [22] - The company is reducing exposure to commodity grades in the Global Cellulose Fibers business and aligning resources with the most attractive customers and segments [23] Management Commentary on Operating Environment and Future Outlook - Management is encouraged by positive market momentum and signs of demand recovery [5] - The company expects significant earnings improvement based on positive market trends and benefits from commercial and cost improvement initiatives [8] - The Box Go-to-Market strategy exceeded expectations in Q1, with additional opportunities expected throughout the year [22] - The company is preparing for higher utilization and increased equipment utilization, with proactive maintenance spending focused on improving productivity and efficiencies [18] Other Important Information - The company announced a CEO transition, with Andy Silvernail stepping into the role on May 1, 2024 [83] - The outgoing CEO expressed confidence in the company's future and the leadership of the new CEO [83] Q&A Session Summary Question: Benefits from the Box Go-to-Market strategy and incremental benefits in Q2 and beyond [28] - The company exceeded its initial outlook of $70 million in benefits, achieving $110 million in Q1 due to better-than-expected local improvements and investments in commercial teams [30] - Additional benefits are expected to flow through in Q2 and beyond as the strategy continues to be executed [30] Question: North American Industry Box shipment growth revision to 2%-3% in 2024 [31] - The revision reflects a conservative outlook due to a tough economic environment, but management believes growth could be closer to 3% or even 4% if the economy improves [32] Question: Operations and costs in the packaging business [35] - The $70 million negative impact in Q2 includes proactive maintenance spending and higher inflation, with additional costs related to labor, materials, and contracted services [36][37][38] Question: Market prices and corporate expenses [49] - The company does not comment on forward-looking pricing but expects the $40 per ton increase to flow through contracts over the next few quarters [50] - Corporate expenses are expected to remain within the $60 million to $80 million range for the year, with some volatility quarter-to-quarter [50] Question: EBITDA margin targets and customer mix changes [52][56] - The company aims for an EBITDA margin in the high teens (18%) on its way to 20%, with a focus on improving profitability through the Box Go-to-Market strategy [53] - The customer mix shifted during COVID, with a focus on large national accounts, but the company is now working to improve the economics of these accounts and return to more profitable regional and local customers [59][60] Question: Maintenance and investment costs [63] - Maintenance costs have increased due to inflation and targeted spending, particularly in the Box business, with a focus on reliability and productivity improvements [64][65][68] Question: Operational readiness and customer mix targets [78] - The company is seeing productivity improvements and is focused on targeted maintenance spending to support market growth [79] - The local business is expected to grow as a percentage of total business, rebalancing the mix between national and regional customers [80]

International Paper Company (IP) reported first-quarter 2024 adjusted earnings of 17 cents per share, missing the Zacks Consensus Estimate of 23 cents by a margin of 26%. The bottom line slumped 68% year over year due to a decline in volumes in corrugated packaging, as well as lower prices in both Industrial Packaging and Global Cellulose Fibers segments.Including one-time items, the company posted earnings per share of 16 cents from continuing operations in first-quarter 2024 compared with 49 cents in the ...

First Quarter 2024 Earnings April 25, 2024 Forward-Looking Statements Certain statements in this press release that are not historical in nature may be considered “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the use of forward-looking or conditional words such as “expects,” “anticipates,” “believes,” “estimates,” “could,” “should,” “can,” “forecast,” “intend,” “look,” “may,” “will,” “remain,” “confide ...

Exhibit 99.1 News Release International Paper Reports First Quarter 2024 Results MEMPHIS, Tenn. – April 25, 2024 – International Paper (NYSE: IP) today reported first quarter 2024 financial results. FIRST QUARTER 2024 HIGHLIGHTS "International Paper made progress executing our strategic initiatives in the first quarter,'' said Mark Sutton, Chairman and Chief Executive Officer. "We saw commercial benefits from our business strategies, as well as cost benefits from mill system optimization. Although costs rem ...

International Paper Company (IP) is scheduled to report first-quarter 2024 results before the opening bell on Apr 25.Q1 EstimatesThe Zacks Consensus Estimate for IP’s first-quarter sales is pegged at $4.45 billion, suggesting an 11.4% fall from the year-ago quarter’s reported figure.The consensus mark for earnings is pegged at 22 cents per share, indicating a year-over-year slump of 58.5%. Earnings estimates have moved up 5% in the past 30 days.Q4 PerformanceIn the last reported quarter, International Paper ...

The Manufacturing Institute Honored International Paper's Sarah DaleMEMPHIS, Tenn., April 19, 2024 /PRNewswire/ -- The Manufacturing Institute—the workforce development and education affiliate of the National Association of Manufacturers—announced that Sarah Dale, plant general manager at International Paper (NYSE: IP) has been recognized as a 2024 Women MAKE Awards.Experience the full interactive Multichannel News Release here: https://www.multivu.com/players/English/9262851-international-paper-women-make- ...

International Paper Company (IP) has confirmed that it has entered into an agreement to acquire the entire issued share capital of DS Smith (DITHF) . This marks a strategic move to strengthen its corrugated packaging business in Europe and prioritize sustainable packaging. The buyout is expected to be accretive to IP’s earnings in the first year of closure and provide at least $514 million of pre-tax cash synergies on an annual run-rate basis by the end of the fourth year following the close.The offer value ...

NEW YORK, April 17, 2024 (GLOBE NEWSWIRE) -- Kuehn Law, PLLC, a shareholder litigation law firm, is investigating potential claims related to the below-listed proposed mergers. Kuehn Law may seek additional disclosures or other relief on behalf of the shareholders of these companies. Kuehn Law is investigating whether the Boards of the below companies 1) acted to maximize shareholder value, 2) failed to disclose material information, and 3) conducted a fair process: NuStar Energy has agreed to be acquired b ...

Creates Significant Shareholder Value and a Global Leader in Sustainable Packaging Solutions with a Focus on Attractive and Growing North American and European Regions Strengthens Customer Value Proposition Through Enhanced Offerings, Innovation and Geographic Reach Expected to Achieve Significant Synergies of At Least $514 Million EPS Accretive in Year One with a Strong Investment-Grade Balance Sheet Shared Commitment to Sustainability and Responsible Growth MEMPHIS, Tenn., April 16, 2024 /PRNewswire/ -- ...

Yuji SakaiInternational Paper Company (NYSE:IP) shows a 4.7% dividend yield and recent recommendations from investment banks. IP appears to be making significant transformations that include sale of assets and restructuring, which could accelerate with the recently elected CEO. In addition, I think that further repurchases of its own shares and reduction in the share count could bring significant demand for the stock. I did see some risks from failed reduction in the debt/EBITDA level, supply chain issu ...