International Paper narrows 4Q loss

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MEMPHIS, Tenn. -International Paper reported a narrowed fourth-quarter loss Wednesday following a year of cost and job cuts to slow production and match falling demand for boxes and other paper products.

And for the year, it returned to profitability.

The company has shut plants and said in October it would lay off more than 1,100 people before the spring.

International Paper did turn a profit in the third quarter, but largely because of a huge federal tax credit.

Revenues continued to slide and in the final three months of the year, the company lost $101 million, or 24 cents per share, compared with a loss of $1.79 billion, or $4.25 per share, a year earlier.

Loss from continuing operations was $97 million, or 24 cents per share, compared with a loss of $1.81 billion, or $4.26 per share, during the same period a year ago.

Taking out one-time items, earnings from continuing operations were $101 million, or 24 cents per share.

Analysts have followed the company closely to see if it could keep pace with slowing demand as other businesses cut down on spending, and International paper just beat out Wall Street expectations of 23 cents-per-share.

Sales for the three months ended Dec. 31 dropped 8 percent to $6 billion from $6.55 billion.

For the year, the company earned $663 million, or $1.55 per share. That compares with a loss of $1.28 billion, or $3.05 per share, in the prior year.

Earnings from continuing operations were $681 million, or $1.55 per share, compared with a loss from continuing operations of $1.27 billion, or $3.02 per share.

Adjusted earnings from continuing operations were $378 million, or 88 cents per share.

Annual revenue for International Paper Corp. dipped 6 percent to $23.37 billion from $24.83 billion.

2010-02-03 07:54:42