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International Paper reports earnings loss

International Paper, a Memphis, Tennessee-based producer of fiber-based packaging, pulp and paper products, has reported an earnings loss in the fourth quarter of 2021 compared with the same time period in 2020 that the company attributes to maintenance outages, supply chain issues and poor logistics reliability.

The 2021 fiscal year posed challenges for the company. “For much of 2021, we operated with a suboptimized system, which limited our ability to capture the full opportunity that comes with a strong demand backdrop,” said Mark Sutton, CEO of International Paper, during the company’s fourth-quarter 2021 earnings call Jan. 27.  

According to a news release from International Paper, the company’s fourth-quarter net earnings were $107 million compared with $864 million in the third quarter of 2021 and $153 million in the fourth quarter of 2020. Third-quarter 2021 net earnings include a net after-tax gain of $350 million on the sale of the company’s Kwidzyn, Poland, mill. The fourth quarter had adjusted operating earnings of $301 million compared with $431 million in the third quarter of 2021 and $206 million in the fourth quarter of 2020.

For fiscal 2021, International Paper reported full-year net earnings of $1.8 billion compared with $482 million for fiscal 2020. The company also achieved full-year adjusted operating earnings of $1.3 billion compared with $848 million for full-year 2020.

For more details on the company’s earnings: https://bit.ly/ipearnings.

Packaging Corp. of America sees increase in net sales

Lake Forest, Illinois-based Packaging Corp. of America (PCA) has reported year-end figures for 2021 that include increases in net sales and earnings before interest, taxes, depreciation and amortization.

The company’s $7.73 billion in 2021 sales represents a 13.9 percent increase over $6.66 billion in 2020. PCA’s 2021 earnings before interest, taxes, depreciation and amortization (EBITDA) of more than $1.66 billion was a 35.9 percent rise from a 2020 figure of $1.23 billion.

PCA enjoyed a profitable fourth quarter despite that period including “certain costs at the Jackson, Alabama, mill for paper-to-containerboard conversion-related activities.”

Fourth-quarter market and financial conditions included “higher volumes and higher prices and mix in our Packaging and Paper segments, lower wood fiber and energy costs, lower scheduled maintenance outage expenses and a favorable tax rate,” the company says.

For more details on PCA’s quarterly earnings: https://bit.ly/pcaearnings.

WestRock records strong quarterly performance

WestRock Co., an Atlanta-based provider of paper and packaging solutions, has achieved first-quarter 2022 net sales of $5 billion, which the company says is a 12.5 percent increase compared with the first quarter of 2021. WestRock’s first quarter of 2022 ended Dec. 31, 2021.

The company also achieved net income of $182 million for the quarter, up 19.9 percent from the first quarter of 2021, as well as consolidated earnings before interest, taxes, depreciation and amortization of $680 million for the quarter, up 1.6 percent year over year.

“I am pleased with our strong performance during the first quarter of fiscal 2022, in which our teams delivered record first-quarter sales and double-digit [earnings per share] growth while navigating the continued and unpredictable macroeconomic landscape,” says David B. Sewell, chief executive officer of WestRock. “We also delivered solid margin performance in the face of continued supply chain disruption, higher inflation and increased absenteeism associated with COVID-19.”

WestRock reorganized its segments for its 2022 fiscal year to Corrugated Packaging, which includes the company’s corrugated converting operations; Consumer Packaging, which includes the company’s integrated consumer converting operations; Paper, which includes third-party paper sales; and Distribution, which includes the company’s distribution and display assembly operations.

During the company’s earnings call Feb. 3, WestRock reported that its Packaging segment sales rose 10 percent in the first quarter of its 2022 fiscal year compared with the first quarter of its 2021 fiscal year, while its Paper segment sales rose 24 percent.

For more details on WestRock’s quarterly earnings: https://bit.ly/westrockearnings.