International Paper Co Stock Price, News & Analysis

International Paper announced its support for The Center for Heirs' Property Preservation™ as part of the Mobile Basin Heirs' Property Support Initiative in Mississippi. This two-year initiative aims to assist historically underserved families in protecting generational land and promoting sustainable forest management. Heirs' property, which often affects Black families, leads to land loss due to complex title issues. The program, launched in October 2021, is designed to resolve title issues, bolster generational wealth, and provide forestry education. International Paper emphasizes its commitment to sustainability and community support through this initiative.

On January 31, 2023, International Paper (NYSE: IP) reported its financial results for the full year and fourth quarter of 2022. The company recorded full-year net earnings of $1.5 billion ($4.10 per diluted share), down from $1.8 billion in 2021. Q4 showed a net loss attributable to International Paper of $(318) million, including a significant $533 million impairment from its Ilim joint venture. Despite challenges such as inflation and lower demand impacting margins, adjusted operating earnings for 2022 rose to $1.2 billion ($3.18 per diluted share), a notable increase from the previous year. The company generated $2.2 billion in cash from operations and returned $1.93 billion to shareholders through buybacks and dividends.

Santiago Arbelaez, Vice President of Strategy at International Paper, has been appointed to the Paper and Packaging Board for a three-year term by USDA Secretary Tom Vilsack. Arbelaez will join a board dedicated to promoting sustainability and recycling in the paper and packaging sectors. The Paper Checkoff program, which Arbelaez will engage with, consists of over 40 participating companies and focuses on enhancing consumer perceptions of the industry's environmental contributions. Arbelaez has been with International Paper for over 30 years, holding various leadership roles and contributing to the company's global diversity initiatives.

International Paper is enhancing its commitment to sustainability with strategic investments aimed at achieving its Vision 2030 goals. A notable project includes the conversion of its coal-fired power boiler system at the Rome, Georgia Mill to natural gas. This $2.36 million initiative is expected to decrease greenhouse gas emissions by nearly 90,000 metric tons annually, as natural gas produces about 40% fewer GHG emissions than coal. In 2021, the company reported net sales of $19.4 billion and operates manufacturing facilities across multiple regions.

On January 24, 2023, International Paper (NYSE: IP) announced the sale of its 50% stake in Ilim SA joint venture for $484 million, pending regulatory approval in Russia. This transaction reflects a total enterprise value of approximately $3.5 billion, based on a 3.1X EBITDA multiple on 2022 results. The company also intends to sell a 2.39% stake in JSC Ilim Group for $24 million. The unaudited 2022 EBITDA for Ilim stood at $1.11 billion, with net debt at $2.45 billion. Further details will be released as they become available.

International Paper is responding to significant damage caused by recent storms in Alabama, particularly affecting its Prattville and Riverdale Containerboard Mills. Over 50 employees at the Riverdale Mill reported varying degrees of home damage. The company is providing essential disaster relief such as tarps, water, and hygiene kits. Additionally, International Paper is donating $100,000 to aid disaster relief efforts, supporting both its employees and local organizations like the United Way. This initiative underscores the company’s commitment to its workforce and community, reflecting its values during challenging times.

International Paper (NYSE:IP) plans to invest approximately $103 million to construct two natural gas power boilers for its Containerboard Mill in Cedar Rapids, Iowa. Construction will commence in Q2 2023 and is expected to be operational by the end of 2025. This initiative will create seven new permanent positions, with an additional 100 construction jobs during the project. The new boilers will lead to a 25% reduction in emissions by replacing coal-based generators, aligning with IP's Vision 2030 goal of a 35% reduction in greenhouse gas emissions. The investment underscores IP's commitment to the Cedar Rapids community and its Industrial Packaging business.

International Paper announced its commitment to reduce water usage by 25% by 2030, emphasizing the importance of water conservation in its manufacturing process. The company conducts comprehensive assessments of watersheds to identify local water issues and improve water management practices. Initial results show a 2% reduction in water use intensity from 2019. Collaborative efforts with industry associations and ongoing partnerships with the World Resources Institute are part of their strategy to enhance water stewardship. The company aims to develop context-based water management plans for its mills and prioritize water-related operational improvements.