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Mar 31, 2022
International Paper Q1 2022 Earnings Report
International Paper's earnings exceeded expectations due to strong operational performance and strategic initiatives.
Key Takeaways
International Paper reported first quarter net earnings of $360 million, or $0.95 per diluted share, compared to $349 million, or $0.88 per diluted share, in the first quarter of 2021. Adjusted operating earnings were $288 million, or $0.76 per diluted share, compared to $198 million, or $0.50 per diluted share, in the same period last year. The company achieved $40 million in earnings from its Building a Better IP initiatives and generated strong cash from operations.
Net earnings attributable to International Paper were $360 million ($0.95 per diluted share).
Adjusted operating earnings (non-GAAP) reached $288 million ($0.76 per diluted share).
Earnings of $40 million were achieved from Building a Better IP initiatives.
Cash provided by operations totaled $588 million.
International Paper
International Paper
International Paper Revenue by Segment
Revenue by Segment
Global Cellulose Fibers Revenue
CapyFin.comCorporate & Inter-segment Revenue
CapyFin.com Forward Guidance
Looking ahead to the second quarter, the company anticipates stable demand at elevated levels and expects margin expansion as realization of prior price movements begins to outpace higher costs. They are stepping down from their highest maintenance outage quarter of the year and accelerating value creation through their Building a Better IP set of initiatives, confident in their full-year target of $200 to $225 million of incremental earnings.
Positive Outlook
- Stable demand at elevated levels is anticipated.
- Margin expansion is expected as price realization outpaces higher costs.
- Maintenance outage expenses will decrease.
- Value creation is accelerating through Building a Better IP initiatives.
- Full-year target of $200 to $225 million of incremental earnings is expected.
Challenges Ahead
- Significantly higher input costs were experienced.
- Sales volumes were lower for corrugated boxes and export containerboard reflecting fewer shipping days.
- Continuing supply chain challenges.
- Seasonally higher operating costs.
- Higher input costs for wood, chemicals and energy.
Revenue & Expenses
Visualization of income flow from segment revenue to net income