Jan. 27, 2022 - International Paper today reported fourth quarter and full-year 2021 financial results.
FOURTH QUARTER AND FULL-YEAR 2021 HIGHLIGHTS
"In 2021, International Paper grew revenue and earnings in a highly challenging operating and cost environment," said Mark Sutton, Chairman and Chief Executive Officer. "Throughout 2021, we serviced strong customer demand while managing through significant operational and supply chain constraints. We focused our portfolio around corrugated packaging and initiated meaningful actions to accelerate profitable growth and materially lower our cost structure. Additionally, we returned $1.6 billion to shareowners through strong cash generation and reduced debt by $2.5 billion."
Sutton added, "As we enter 2022, underlying customer demand remains solid, although we anticipate near-term pressure on volume due to Omicron-related labor and logistics constraints on the value chain. We expect to grow earnings in 2022 and are confident in our ability to accelerate value creation for our shareowners and customers as we take actions to Build a Better IP."
SEGMENT INFORMATION
Business segment operating profits are used by International Paper's management to measure the earnings performance of its businesses and is calculated as set forth in footnote (h) below under "Sales and Earnings by Business Segment". As a result of the spin-off of our global Printing Papers business on October 1, 2021, the Printing Papers business segment has been eliminated and all current and prior year amounts have been adjusted to reflect this business as a discontinued operation.
Industrial Packaging operating profits (losses) in the fourth quarter of 2021 were $414 million compared with $414 million in the third quarter of 2021. In North America, earnings increased reflecting higher sales prices for corrugated boxes and containerboard. Sales volumes were stable for corrugated boxes and increased for containerboard. These benefits were partially offset by increased distribution, wood fiber, recovered fiber and energy costs. Earnings in the fourth quarter of 2021 benefited from insurance recoveries. In Europe, earnings slightly improved reflecting seasonally higher volumes primarily in Morocco, mostly offset by higher energy costs. Average sales margins improved driven by an improved product mix.
Global Cellulose Fibers operating profits (losses) in the fourth quarter of 2021 were $1 million compared with $76 million in the third quarter of 2021. Earnings decreased primarily driven by higher planned maintenance outage expenses and input costs for energy and chemicals. Average sales prices were stable for fluff pulp and lower for market pulp. Sales volumes were slightly lower. Operating costs were higher driven by the non-repeat of favorable items in the third quarter of 2021. Distribution costs increased, reflecting the continued challenging export supply chain environment.
EQUITY METHOD INVESTMENTS
Ilim joint venture equity earnings (loss) were $66 million in the fourth quarter of 2021 compared with $95 million in the third quarter of 2021. Operationally, earnings decreased reflecting lower export sales prices for softwood pulp and hardwood pulp and domestic sales prices for containerboard. Lower maintenance outage expenses were more than offset by higher other costs.
International Paper's complete Fourth Quarter and Full-Year 2021 Results can be found on the company's website: www.internationalpaper.com.
International Paper (NYSE: IP) is a leading global supplier of renewable fiber-based products. We produce corrugated packaging products that protect and promote goods, and enable worldwide commerce, and pulp for diapers, tissue and other personal care products that promote health and wellness. Headquartered in Memphis, Tennessee, IP employs approximately 38,000 colleagues globally. To learn more, visit: www.internationalpaper.com.
SOURCE: International Paper
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