|
International Paper Co on Thursday reported a swing to a net loss in the first half of 2025, hurt by charges linked to its acquisition of UK peer DS Smith, despite a sharp increase in sales. The Memphis, Tennessee-based packaging company was upbeat for the second half, citing cost cuts, higher volumes and strategic wins. For the six months that ended June 30, the group posted a net loss of $30 million, or a $0.06 loss per share, down from a net profit of $554 million, or $1.59 per share, a year before. The result included after-tax charges of $34 million in the second quarter related to integration and severance costs. Second-quarter net income fell sharply to $75 million from $498 million, with earnings per share at $0.14 versus $1.43 a year earlier. However, net sales rose 35% year-on-year to $12.67 billion in the half, and 43% to $6.77 billion in the quarter, reflecting the contribution of DS Smith, acquired in January. Segment results were mixed. Packaging Solutions North America delivered a quarterly profit of $277 million, up from $142 million in the first quarter, supported by higher prices and volumes. But the European unit swung to a $1 million loss from a $46 million profit amid soft demand, higher energy costs, and increased depreciation. Chief Executive Officer Andy Silvernail said the company is making progress on its transformation, though margin pressure and integration costs weighed on results. ‘We have exceeded our expectations on commercial actions and are on target to achieve cost-out actions before the end of year,’ Silvernail said. International Paper expects stronger global revenue and earnings in the third quarter, he said, supported by fewer maintenance outages and strategic wins. Adjusted operating earnings per share were $0.20 in the second quarter, down from $0.55 a year ago. Free cash flow stood at $54 million for the quarter, compared to $167 million a year before. International Paper reiterated its focus on improving margins and operational efficiency as it continues to integrate DS Smith and position itself as a ‘differentiated and sustainable global packaging company.’ Shares in the company were down 5.6% at 3,558.30 pence in London on Friday morning. They had closed down 13% at $46.74 in New York on Thursday. Copyright 2025 Alliance News Ltd. All Rights Reserved.
|
