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    International Paper Co (IP)

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    Business Description

    International Paper (IP) is a global producer of renewable fiber-based packaging and pulp products, with operations spanning North America, Latin America, Europe, and North Africa . The company primarily operates in two business segments: Industrial Packaging and Global Cellulose Fibers . They sell fiber-based packaging solutions and cellulose fibers used in various products, including diapers, towels, and personal care items .

    1. Industrial Packaging - Creates fiber-based packaging solutions, including linerboard, medium, whitetop, recycled linerboard, recycled medium, and saturating kraft. A significant portion of production is converted into corrugated packaging and other packaging products, with operations mainly in North America and EMEA.

    2. Global Cellulose Fibers - Produces cellulose fibers for products such as diapers, towels, tissue products, and other personal care items. Also includes specialty pulps for textiles and construction materials.

    Key Metrics

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    Executive Team

    NamePositionStart DateShort Bio
    Mark S. SuttonChairman of the Board and Chief Executive OfficerNovember 1, 2014Mark S. Sutton has been the CEO since November 1, 2014, and Chairman since January 1, 2015. He joined IP in 1984 and has held various roles, including President and COO .
    Timothy S. NichollsSenior Vice President and Chief Financial OfficerJune 2018Timothy S. Nicholls has been the CFO since June 2018. He previously held the same position from 2007 to 2011 and joined IP in 1999 .
    Clay R. EllisSenior Vice President - Global Cellulose Fibers and IP AsiaJanuary 2023Clay R. Ellis has been in his current role since January 2023. He joined IP in 1992 and has held various leadership positions .
    Aimee GreggSenior Vice President, Supply Chain and Information TechnologyJanuary 2023Aimee Gregg has been in her current role since January 2023. She joined IP in 2002 and has held various roles, including Vice President and General Manager of Containerboard and Recycling .
    W. Thomas HamicSenior Vice President - North American Container and Chief Commercial OfficerJanuary 1, 2023W. Thomas Hamic has been with IP since 1991 and assumed his current role on January 1, 2023. He has held various leadership roles within the company .
    Allison B. MagnessSenior Vice President Manufacturing and Environmental Health and SafetyJanuary 2023Allison B. Magness has been in her current role since January 2023. She joined IP in 2000 and has held various positions, including Vice President of the South Area, North American Container .
    Thomas J. PlathSenior Vice President - Human Resources and Corporate AffairsJanuary 2023Thomas J. Plath has been in his current role since January 2023. He joined IP in 1991 and has held various HR roles. He will leave the company at the end of 2024 .
    James P. Royalty, Jr.Senior Vice President - Containerboard and RecyclingJanuary 2023James P. Royalty, Jr. has been in his current role since January 2023. He joined IP in 1991 and has held various roles, including Senior Vice President and President for Europe, the Middle East, Africa, and Russia .
    Joseph R. SaabSenior Vice President, General Counsel and Corporate SecretaryJuly 2022Joseph R. Saab has been in his current role since July 2022. He joined IP in 2001 and has served in various legal roles, including Associate General Counsel for Industrial Packaging .
    Ksenia N. SosninaSenior Vice President, Europe, Middle East & AfricaJuly 2023Ksenia N. Sosnina has been in her current role since July 2023. She joined IP in 2013 and previously served as CEO of the Ilim Group .
    Andrew K. SilvernailChief Executive Officer and Executive DirectorMay 1, 2024Andrew K. Silvernail became CEO effective May 1, 2024. He joined IP with over two decades of experience in leading global manufacturing and technology-based companies .
    Jamie A. BeggsIndependent DirectorMay 21, 2024Jamie A. Beggs was elected as an independent director effective May 21, 2024. She is currently the CFO of Avient Corporation and has a background in finance .
    Scott A. TozierIndependent DirectorN/AScott A. Tozier serves as an Independent Director at IP. However, the documents do not provide specific details regarding his start date in this role.
    Clinton A. Lewis, Jr.Member of the Governance CommitteeN/AClinton A. Lewis, Jr. is a member of the Governance Committee at IP. He is the CEO of AgroFresh Solutions, Inc. since April 2021 and previously held executive roles at Zoetis Inc. .

    Questions to Ask Management

    1. Given the history of underinvestment leading to cost problems and loss of market share, can you provide specific timelines and milestones for your planned investments to improve reliability and regain market share?
    2. You mentioned adopting the 80/20 operating system to drive superior results; what specific measurable targets have you set, and how will this approach address the previous challenges that the company faced?
    3. With packaging volumes continuing to lag the overall market and expected to decline in the near term, what concrete steps are you taking to reverse this trend and prevent further volume losses?
    4. Over the past decade, significant capital was allocated to dividends and share repurchases without generating the expected returns; how will your future capital allocation strategy differ to ensure value creation for shareholders?
    5. Regarding the DS Smith acquisition, how do you plan to integrate their operations effectively without adding unnecessary complexity, and what specific synergies do you expect to achieve from this acquisition?

    Share Repurchase Program

    Program DetailsProgram 1
    Approval DateOctober 11, 2022
    End Date/DurationNo expiration date
    Total additional amount$3.35 billion
    Remaining authorization$2.96 billion (as of 2024-12-21)
    DetailsPart of capital allocation framework for long-term value creation

    Auditor

    NameStart DateEnd DateReason for Change
    Deloitte & Touche LLP2002 PresentCurrent auditor

    Latest news

    Recent developments and announcements about IP.

    Financial Reporting

      Earnings Report

      ·
      6 days ago

      International Paper (IP) has released its earnings results for the fourth quarter and full-year 2024.

      Key Highlights:

      • Net Sales:

        • Fourth Quarter 2024: $4.6 billion (unchanged from Q4 2023).
        • Full-Year 2024: $18.6 billion (a slight decrease from $18.9 billion in 2023).

      • Net Earnings (Loss):

        • Fourth Quarter 2024: Net loss of $147 million, or $0.42 per diluted share, compared to a net loss of $284 million in Q4 2023.
        • Full-Year 2024: Net earnings of $557 million, or $1.57 per diluted share, up from $288 million in 2023.

      • Adjusted Operating Earnings (Non-GAAP):

        • Fourth Quarter 2024: Adjusted operating loss of $7 million, or $0.02 per diluted share, compared to a loss of $175 million in Q4 2023.
        • Full-Year 2024: Adjusted operating earnings of $400 million, or $1.13 per diluted share, down from $438 million in 2023.

      • Free Cash Flow:

        • Fourth Quarter 2024: $137 million, down from $187 million in Q4 2023.
        • Full-Year 2024: $757 million, an increase from $692 million in 2023.

      Segment Performance:

      • Industrial Packaging:

        • Fourth Quarter 2024 operating profit: $247 million, up from $197 million in Q3 2024 and a loss of $32 million in Q4 2023.
        • Full-Year 2024 operating profit: $951 million, up from $919 million in 2023.

      • Global Cellulose Fibers:

        • Fourth Quarter 2024 operating loss: $(250) million, compared to a profit of $40 million in Q3 2024 and a loss of $(133) million in Q4 2023.
        • Full-Year 2024 operating loss: $(226) million, compared to a loss of $(92) million in 2023.

      Strategic Updates:

      • The company is undergoing a transformation to reduce costs and optimize operations, including the closure of the Georgetown, S.C. pulp mill, which contributed to a $395 million pre-tax charge in 2024.
      • IP is exploring strategic options for its Global Cellulose Fibers business and plans to integrate DS Smith Plc into its operations following the expected completion of their business combination on January 31, 2025.

      CEO Commentary:

      Chairman and CEO Andy Silvernail stated, "2025 will be a transformational year with disciplined execution to further reduce costs and balance our capacity to our demand. 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".

      Earnings Call:

      The company will host a webcast today at 10 a.m. ET to discuss the results. Interested parties can access the webcast via the company's website.