International Paper reports Q1 2023 sales of $5,020 billion, compared to $5,237 billion in the Q1 2022. Q1 2023 net earnings (loss) were $172 million ($0.49 per diluted share). Q1 2023 adjusted operating earnings (non-GAAP) were $185 million ($0.53 per diluted share).
"International Paper operated well in the Q1, while navigating a challenging and dynamic macro environment," said Mark Sutton, Chairman of the Board and CEO. "We successfully executed our highest maintenance outage quarter and realized additional benefits from our Building a Better IP initiatives and lower input costs. We also returned $319 million to shareowners."
"Looking ahead," Sutton added, "we expect the demand environment to improve throughout the year as customer inventory destocking runs its course. We remain focused on serving our customers' needs, while optimizing our system to drive out high marginal costs and maximizing value for our stakeholders."
Industrial Packaging operating profits (losses) in the Q1 2023 were $322 million compared with $416 million in the Q4 2022. In North America, earnings decreased as lower input costs, primarily for recovered fiber and energy, were more than offset by lower revenue and higher planned maintenance outage expenses. Sequentially, revenue decreased as a result of lower sales prices for corrugated boxes and containerboard offset by some additional volume benefit from four more shipping days. Operating costs were higher in the Q1 2023 due to the non-repeat of favorable one-time items for employee benefit costs and medical claims. In EMEA, earnings improved driven by lower energy and containerboard costs.
Global Cellulose Fibers operating profits (losses) in the Q1 2023 were $(16) million compared with $35 million in the Q4 2022. Higher sales prices for fluff pulp was more than offset by overall lower sales volumes and a less favorable mix of lower fluff volumes and higher commodity volumes. Lower input costs, primarily for energy, were offset by higher planned maintenance outage expenses. Operating costs in the Q1 of 2023 were higher reflecting the impact of increased economic downtime and inflation and the non-repeat of favorable one-time items for employee benefit costs and medical claims in the Q4 2022.
International Paper is a global producer of planet-friendly packaging, pulp and other fiber-based products, and one of North America's largest recyclers.
