"During 2024, we initiated our strategy to deliver profitable growth as the low-cost, most reliable and innovative sustainable packaging solutions provider for our customers." – Andy Silvernail, Chairman and CEO, International Paper.
Jan. 30, 2025 - International Paper (NYSE: IP) today reported full-year 2024 net earnings of $557 million, or $1.57 per diluted share, and adjusted operating earnings (non-GAAP) of $400 million, or $1.13 per diluted share. Full-year net sales were $18.6 billion in 2024 and $18.9 billion in 2023.
The reported fourth quarter net loss was $147 million, or $0.42 per diluted share, and adjusted operating loss (non-GAAP) was $7 million, or $0.02 per diluted share. Fourth quarter net sales were $4.6 billion in 2024 and 2023.
Full-year and fourth quarter net earnings include a pre-tax charge of $395 million for accelerated depreciation and restructuring charges, including $334 million related to the previously announced closure of the Company's Georgetown, South Carolina pulp mill.
"During 2024, we initiated our strategy to deliver profitable growth as the low-cost, most reliable and innovative sustainable packaging solutions provider for our customers," said Chairman and CEO Andy Silvernail. "Through a disciplined 80/20 approach, we have restructured our corporate organization, added resources to the business, reduced structural costs through footprint actions and successfully piloted regional box plant optimization. In the quarter, our earnings have stabilized and we intend to accelerate earnings improvement in 2025.
"2025 will be a transformational year with disciplined execution to further reduce costs and balance our capacity to our demand," Silvernail added. "We will continue to optimize and invest in our box plant system to deliver service excellence for our customers while actively exploring strategic options for our Global Cellulose Fibers business. We look forward to welcoming the DS Smith team into the IP family as we work together to become a global leader in sustainable packaging solutions."
Industrial Packaging business segment operating profit (loss) in the fourth quarter of 2024 was $247 million compared with $197 million in the third quarter of 2024. In North America, net sales were lower as higher sales prices for boxes and containerboard were more than offset by lower volumes. Cost of products sold was impacted by lower recovered fiber costs and lower planned outage costs. Other input costs were flat, as higher energy costs were offset by lower wood and freight costs. Business segment operating profit (loss) was improved by an insurance reimbursement related to the Ixtac, Mexico box plant fire of $13 million in the fourth quarter of 2024 and $25 million in the third quarter of 2024. In EMEA Packaging, net sales were higher driven by seasonally higher volumes and an improved product mix. Cost of products sold was impacted by lower input costs reflecting an energy subsidy received in the fourth quarter of 2024.
Global Cellulose Fibers business segment operating profit (loss) in the fourth quarter of 2024 was $(250) million compared with $40 million in the third quarter of 2024. Net sales were lower, driven by lower average sales prices and lower volumes for both commodity pulp and fluff pulp. Cost of products sold was impacted by higher operating costs, driven by mill reliability incidents, higher planned outage costs and lower input costs reflecting lower wood and chemical costs partially offset by higher energy costs. Business segment operating profit was impacted by $215 million of accelerated depreciation expense in the fourth quarter of 2024 associated with the previously announced closure of the Georgetown, South Carolina pulp mill.
Net special items include items considered by management to not be reflective of the Company's underlying operations. Net special items in the fourth quarter of 2024 amount to a net after-tax charge of $146 million ($0.42 per diluted share) compared with a charge of $12 million ($0.04 per diluted share) in the third quarter of 2024 and a charge of $98 million ($0.28 per diluted share) in the fourth quarter of 2023.
International Paper (NYSE: IP) is a global producer of sustainable packaging, pulp and other fiber-based products, and one of the world's largest recyclers. Headquartered in Memphis, Tennessee, IP employs approximately 37,000 colleagues globally and serves customers worldwide, with manufacturing operations in North America, Europe, Latin America and North Africa. Net sales for 2024 were $18.6 billion.
SOURCE: International Paper
Paper Industry Newsletter
Stay on top of paper industry news
from around the world with
PaperAge's free weekly newsletter.
Delivered every Thursday.
Sign up today!