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Sep 30, 2021
International Paper Q3 2021 Earnings Report
International Paper's financial performance improved with increased revenue, earnings, and margins, despite facing significant input cost and supply chain challenges.
Key Takeaways
International Paper reported strong Q3 2021 results with net earnings of $864 million, or $2.20 per diluted share, and adjusted operating earnings of $532 million, or $1.35 per diluted share. The company benefited from higher sales prices and lower planned maintenance outage expenses, but faced challenges from rising input costs and supply chain constraints.
Net earnings attributable to International Paper reached $864 million ($2.20 per diluted share).
Adjusted operating earnings (non-GAAP) amounted to $532 million ($1.35 per diluted share).
Cash provided by operations totaled $645 million.
The company successfully reduced debt by $235 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
International Paper anticipates strong seasonal demand for corrugated packaging in the fourth quarter, along with further margin expansion from previous price increases.
Positive Outlook
- Strong seasonal demand expected for corrugated packaging in Q4.
- Additional margin expansion anticipated from previous price increases.
- Company grew revenue, earnings and margins in Q3.
- Company continued to generate strong cash from operations in Q3.
- Earnings in North America increased driven by higher sales prices for corrugated boxes and containerboard and lower planned maintenance outage expenses.
Challenges Ahead
- Significant input cost and supply chain challenges persist.
- Supply chain constraints impacted ability to capture full demand.
- Input costs rose more than anticipated.
- Inflationary environment expected to continue.
- Earnings in Europe were lower reflecting seasonally lower volumes primarily in Morocco, and lower average sales margins driven by higher containerboard costs, as well as higher recovered fiber and energy costs.
Revenue & Expenses
Visualization of income flow from segment revenue to net income