International Paper(IP) - 2024 Q4 - Annual Results

Financial Performance - International Paper reported full-year 2024 net earnings of $557 million, or$1.57 per diluted share, compared to $288 million, or$0.82 per diluted share in 2023[2]. - Full-year net sales for 2024 were $18.6 billion, a decrease from$18.9 billion in 2023, while fourth quarter net sales were $4.6 billion, consistent with the same period in 2023[2][6]. - The fourth quarter of 2024 saw a net loss of$147 million, or $0.42 per diluted share, compared to a loss of$284 million, or $0.82 per diluted share in the fourth quarter of 2023[2][6]. - Adjusted operating earnings for the full year 2024 were$400 million, or $1.13 per diluted share, down from$438 million, or $1.25 per diluted share in 2023[2][6]. - Net sales for Q4 2024 were$4,580 million, a slight decrease of 0.5% from $4,601 million in Q3 2024 and a decrease of 1.9$4,686 million in Q4 2023[22]. - Net loss for Q4 2024 was $147 million, compared to a net loss of$284 million in Q3 2024 and a net income of $150 million in Q4 2023[22]. - Basic earnings per share from continuing operations for Q4 2024 was$(0.42), an improvement from $(0.82) in Q3 2024 and an increase from$0.43 in Q4 2023[22]. - Adjusted Operating Earnings for the twelve months ended December 31, 2024, were $400 million, a decrease from$438 million in 2023[25]. - The diluted earnings per share for continuing operations was $(0.42) for the three months ended December 31, 2024, compared to$(0.82) for the same period in 2023[25]. Segment Performance - The Industrial Packaging segment reported a fourth quarter operating profit of $247 million, an improvement from a loss of$32 million in the same quarter of 2023[9]. - The Global Cellulose Fibers segment experienced a significant operating loss of $250 million in the fourth quarter of 2024, compared to a profit of$40 million in the third quarter of 2024[10]. Cash Flow and Investments - Free cash flow for the full year 2024 was $757 million, an increase from$692 million in 2023[6]. - Cash provided by operating activities for the twelve months ended December 31, 2024, was $1,678 million, down from$1,833 million in 2023[34]. - The company invested $921 million in capital projects during the twelve months ended December 31, 2024, down from$1,141 million in 2023[32]. Charges and Restructuring - The company incurred a pre-tax charge of $395 million for accelerated depreciation and restructuring, including$334 million related to the closure of the Georgetown, S.C. pulp mill[3]. - Net special items in the fourth quarter of 2024 amounted to a net after-tax charge of $146 million, compared to a charge of$12 million in the third quarter of 2024[11]. - Restructuring charges for Q4 2024 amounted to $162 million, compared to$99 million in Q3 2024 and $221 million for the full year 2024[22]. - The company reported a restructuring charge of$221 million for the twelve months ended December 31, 2024, compared to $99 million in 2023[32]. Balance Sheet - Total assets decreased to$22,800 million as of December 31, 2024, from $23,261 million as of December 31, 2023[30]. - Current liabilities increased to$4,308 million as of December 31, 2024, compared to $3,959 million as of December 31, 2023[30]. - The company’s total equity decreased to$8,173 million as of December 31, 2024, from $8,355 million as of December 31, 2023[30]. Future Outlook - The company plans to optimize and invest in its box plant system and explore strategic options for its Global Cellulose Fibers business in 2025[3]. - The company expects to close its proposed business combination with DS Smith Plc on January 31, 2025, which is anticipated to enhance its scale and global presence[19]. Economic Challenges - The company faced challenges due to macroeconomic conditions, including inflationary pressures and supply chain disruptions[19].