International Paper sees earnings rise, sales fall

Company to purchase five pulp mills from Weyerhaeuser

By George C. Ford, The Gazette

International Paper, with a cardboard manufacturing plant in southwest Cedar Rapids, has posted higher first-quarter earnings on lower sales.

The Memphis, Tenn.-based company recorded net income of $334 million, or 81 cents per share, in the quarter than ended on March 31, compared with $313.0 million, or 74 cents per share, in the same quarter of 1Q15. International Paper posted first-quarter net sales of $5.1 billion, down 7.4 percent from $5,5 billion in the first quarter of 1Q15.

International Paper has agreed to purchase Weyerhaeuser's pulp business, acquiring five pulp mills and two converting facilities for $2.2 billion. The plants produce fluff pulp, softwood pulp, and specialty pulp for a number of consumer products such as diapers, other hygiene products, tissue, and textiles.

International Paper, which also operates packaging plants in northeast Cedar Rapids and Waterloo, acquired the Cedar Rapids mills that make liner board and medium used to produce cardboard from Weyerhaeuser in March 2008.

l Comments: (319) 398-8366; george.ford@thegazette.com