The International Paper Company (NYSE:IP) is a Memphis based pulp and paper company, it is among the largest company of its kind in the world. The company has recently reported its earnings for the third quarter of 2013 with amazing results. The company reported a net earnings figure of $382 million which is a significant 38% increase when compared to figures from the previous quarter which was at $259 million. The increase was also significant in the sense that it was a 24% increase from the previous quarter of 2013.
The company also reported record operating earnings for Q3 which also saw a significant increase as compared to figures from the previous year. The operating earnings of $471 million for the three month period quips the figure of $358 million for the same time period from last year. Operating earnings however do not include non-operating expenses like pensions and special items. For instance because of the wet summers the company had to bear higher wood costs as wood soaking is a costly loss that paper companies have to face with. The company however was hopeful that the receding rains would give it some respite from this situation.
Speaking about the wood soaking and the costs involved, the company’s CFO said that the impact would certainly be felt in the fourth quarter as well to a certain extent. The company also announced that they would be closing down a unit in Courtland which will be accompanied with around 1000 layoffs. This is part of the salvaging operation to be able to effectively their profitable investments that are still above the water.
The International Paper Company is looking at a bright future as several big orders are expected to come in from two large food service companies in the US for orders for paper cups to replace the currently used Styrofoam cups.
