International Paper reported Q2 2024 financial results. Net sales for the Q2 increased to $4.73 billion, compared to $4.68 billion in the Q2 2023.
Q2 2024 net earnings were $498 million ($1.41 per diluted share); includes a tax benefit of $338 million ($0.96 per diluted share) related to internal legal entity restructuring.
Q2 adjusted operating earnings (non-GAAP) was $193 million ($0.55 per diluted share).
"Reflecting on my first 90 days, I am confident in our teams' ability to unlock substantial value at IP," said Andy Silvernail, CEO. "While our Q2 financial results increased sequentially on better price and seasonally higher volumes, we expect near-term performance to be challenged. In order to accelerate improvement, we are deploying an 80/20 business process. We will make the changes needed to focus our portfolio, become excellent with our customers and optimize our cost to deliver profitable growth. In North America, our investments will center on providing customers with the most reliable and innovative packaging solutions. We also look forward to the combination with DS Smith and together creating significant value for our shareholders."
Industrial Packaging business segment operating profit (loss) in the Q2 2024 was $291 million compared with $216 million in the Q1 2024. In North America, business segment operating profit (loss) increased driven by higher sales prices for boxes, including benefits from our commercial strategies. Containerboard sales prices also increased. Sales volumes increased and include the impact of one additional shipping day in the Q2 2024. Planned outage costs were lower. Operating costs increased driven by spending to improve reliability partially offset by the non-repeat of the Ixtac, Mexico fire impact. Input costs were lower, as lower energy and other raw material costs were partially offset by higher recovered fiber costs. In EMEA Packaging, business segment operating profit (loss) was lower driven by seasonally lower volumes and higher planned outage costs.
Global Cellulose Fibers business segment operating profit (loss) in the Q2 2024 was $31 million compared with $(47) million in the Q1 2024. The improvement of business segment operating profit (loss) reflected higher average sales prices for both fluff and paper and tissue grade pulp, lower operating costs and lower planned outage costs. Input costs were stable as lower energy costs were offset by higher chemicals and wood costs.
International Paper is a global producer of sustainable packaging, pulp and other fiber-based products, and one of the world's largest recyclers.
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