International Paper (IP) Q4 Earnings Lag Estimates, Down Y/Y

 | Feb 04, 2021 04:13AM ET

International Paper Company (NYSE:IP)

International Paper Company Quote

Adjusted cost of sales was $3,654 million, up 1% from the prior-year quarter’s $3,620 million. Gross profit declined 16% year over year to $1,585 million. Adjusted selling and administrative expenses fell 10% year over year to $396 million during the reported quarter. Adjusted operating profit was $296 million, reflecting year-over-year plunge of 31% due to higher input and operating costs.

h3 Segment Performance/h3

Industrial Packaging (NYSE:PKG): Sales in this segment remained flat year over year at $3.8 billion. Operating profit fell 29% year over year to $431 million.

Global Cellulose Fibers: In the reported quarter, the segment’s sales inched up 1% to $582 million from the prior-year quarter. The segment incurred an operating loss of $114 million in the quarter under review, compared with the year-ago quarter’s operating loss of $45 million.

Printing Papers: Sales of this segment amounted to $802 million, reflecting a plunge of 25% from the year-earlier quarter. The segment’s operating profit declined 27% year over year to $80 million in fourth-quarter 2020.

h3 Financial Position/h3

Cash and temporary investments aggregated $595 million as of Dec 31, 2020 compared with $511 million as of Dec 31, 2019. Through 2020, the company returned $800 million to shareholders and reduced debt by $1.7 billion. As of 2020-end, the company’s long-term debt was at $8.1 billion.

Cash flow from operating activities was $3 billion in 2020 compared with $3.6 billion in the prior year. Free cash flow was $2.3 billion in 2020, flat compared with the prior year.

h3 2020 Results/h3

International Paper’s adjusted earnings per share plunged 37% year over year to $2.80 in 2020 and missed the Zacks Consensus Estimate of $2.88. Including one-time items, the bottom line was $1.22, down 60% from the $3.07 in 2019. Sales declined 8% year over year to $20.6 billion from the prior year’s $22.4 billion. The top-line figure matched the Zacks Consensus Estimate.

h3 Price Performance/h3