International Paper Reports Full-Year and Fourth Quarter 2024 Results

Core Insights - International Paper reported full-year 2024 net earnings of $557 million, or $1.57 per diluted share, with adjusted operating earnings of $400 million, or $1.13 per diluted share, compared to $18.6 billion in net sales for 2024, down from $18.9 billion in 2023 [1][15] - The fourth quarter of 2024 saw a net loss of $147 million, or $0.42 per diluted share, with adjusted operating loss of $7 million, or $0.02 per diluted share, and net sales of $4.6 billion, consistent with the same quarter in 2023 [1][5] Financial Performance - Full-year net sales were $18.6 billion in 2024, a decrease from $18.9 billion in 2023 [1] - Fourth quarter net sales were $4.6 billion in both 2024 and 2023 [1][5] - The company incurred a pre-tax charge of $395 million for accelerated depreciation and restructuring charges, including $334 million related to the closure of the Georgetown, S.C. pulp mill [2] Business Strategy - The company initiated a strategy for profitable growth as a low-cost, reliable, and innovative sustainable packaging solutions provider, focusing on restructuring and reducing costs [3] - Plans for 2025 include further cost reductions and balancing capacity with demand, alongside optimizing and investing in the box plant system [3] Segment Performance - In the fourth quarter of 2024, the Industrial Packaging segment reported net sales of $3.869 billion, while the Global Cellulose Fibers segment reported $662 million [9] - The Industrial Packaging segment's operating profit was $247 million, an improvement from a loss of $32 million in the previous quarter [9][10] - The Global Cellulose Fibers segment experienced an operating loss of $250 million, significantly impacted by lower sales prices and volumes [10] Special Items and Adjustments - Net special items in the fourth quarter of 2024 amounted to a net after-tax charge of $146 million, compared to $12 million in the third quarter of 2024 [11] - Adjusted operating earnings for the fourth quarter of 2024 were a loss of $7 million, while the full-year adjusted operating earnings were $400 million [23] Cash Flow and Liquidity - Cash provided by operations for the full year was $1.678 billion, down from $1.833 billion in 2023 [29] - Free cash flow for 2024 was $757 million, an increase from $692 million in 2023 [33]