For Revisions to 3rd Quarter Preliminary Earnings, Please See the Revised Press Release
* Net earnings for the quarter were $1.04 billion, up from the previous quarter and from third quarter 2004, principally reflecting a gain on the sale of Carter Holt Harvey shares and a completion of tax audits.
* Earnings per share from continuing operations and before special items were $0.33 per share versus $0.29 in the second quarter of 2005 and $0.40 per share in the 2004 third quarter.
* Quarterly net sales were $6 billion compared with second-quarter net sales of $5.9 billion and third-quarter 2004 net sales of $6 billion.
STAMFORD, Conn., Oct 25, 2005 /PRNewswire-FirstCall via COMTEX News Network/ -- International Paper
(NYSE: IP) today reported third-quarter 2005 net earnings of $1.04 billion
($2.07 per share), compared with $77 million ($0.16 per share) in the second
quarter of 2005 and a net loss of $470 million ($0.91 per share) in the 2004
third quarter.
(Logo: http://www.newscom.com/cgi-bin/prnh/20020701/IPLOGO )
Third quarter 2005 earnings included $278 million from discontinued
operations ($0.55 per share) relating to the sale of the company's interest in
Carter Holt Harvey Ltd. and $603 million ($1.19 per share) principally from a
U.S. federal income tax audit agreement reached with the U.S. Internal Revenue
Service. The 2004 third quarter results included a discontinued operations
charge of $684 million ($1.34 per share) primarily from the sale of Weldwood
of Canada Ltd. Amounts for all quarters also included certain other special
items.
Earnings from continuing operations and before special items in the third
quarter of 2005 were $162 million ($0.33 per share), compared with $143
million ($0.29 per share) in the second quarter of 2005 and $200 million
($0.40 per share) in the third quarter of 2004.
Diluted Earnings Per Share Summary
Third Second Third
Quarter Quarter Quarter
2005 2005 2004
Net Earnings (Loss) $2.07 $0.16 $(0.91)
Less -- Income from
Discontinued Operations 0.55 0.02 (1.34)
Earnings from Continuing
Operations 1.52 0.14 0.43
Add Back -- Net Special
Items Expense (Income) (1.19) 0.15 (0.03)
Earnings from Continuing
Operations and Before
Special Items $0.33 $0.29 $0.40
Third-quarter 2005 net sales were $6.0 billion, compared with $5.9 billion
in the second quarter of 2005 and $6.0 billion in the third quarter of 2004.
The company experienced seasonal sales increases in most businesses, with the
exception of a slight decline in the industrial packaging business.
Operating profits of $489 million for the 2005 third quarter were slightly
lower compared with second-quarter 2005 operating profits of $491 million, due
principally to lower price realizations and higher energy costs. However,
higher earnings from land and real estate sales and continued strong
productivity improvements helped offset some of these negative impacts.
"Our mills ran well and continued the aggressive improvement we've been
seeing all year, which helped offset some of the impact of pricing pressure
and energy costs," said Chairman and Chief Executive Officer John Faraci.
"This improvement at the mill level, combined with the execution of our
transformation plan, is positioning International Paper for much stronger
results once input costs abate."
Commenting on the fourth quarter of 2005, Faraci said, "We estimate
fourth-quarter earnings from continuing operations and before special items to
be lower than third quarter predominantly because of skyrocketing raw material
costs, particularly energy, and higher transportation costs."
SEGMENT INFORMATION
Third-quarter 2005 segment operating profits and business trends compared
with the second quarter of 2005 are as follows:
Third-quarter operating profits for Printing Papers were $132 million
compared with second-quarter operating profits of $149 million. The decline
in earnings was largely caused by a decline in uncoated freesheet price
realizations, as well as higher input costs. Increases in coated paper
pricing and seasonally stronger volumes, as well as solid performance by
Brazilian operations helped offset some of the negative impacts. The results
also include $9 million in special charges for environmental reserves and
severance and other charges relating to the previously announced indefinite
shutdown of three U.S. paper machines. In the second quarter 2005, the
business took $17 million in special charges related to the three machine
shutdowns.
Industrial Packaging operating profits for the third quarter were $33
million compared with $85 million in second quarter, largely because of lower
pricing for linerboard and boxes together with higher input costs.
Consumer Packaging operating profits were down slightly at $37 million,
compared with $41 million in the previous quarter, largely because of higher
input costs.
The company's distribution business reported operating profits of $23
million for the third quarter, up from $18 million in the previous quarter, on
the strength of stronger sales. High energy prices are impacting
transportation costs.
Third-quarter Forest Products operating profits rose to $272 million from
second-quarter earnings of $191 million. Forest Resources saw strong earnings
mainly due to a $58 million increase in timberland sales from second quarter
and a $26 million increase in "higher and better use" land sales. In Wood
Products, prices have come down from second-quarter highs, but both pricing
and volume for lumber and plywood were strong through the end of the quarter.
Hurricane-related downtime had a minor impact on the quarter.
Net corporate expenses of $142 million in the 2005 third quarter were up
slightly from second quarter's $133 million.
DISCONTINUED OPERATIONS
During the 2005 third quarter, the company completed the sale of its
majority share of Carter Holt Harvey Ltd. to Rank Group Investments Ltd. Cash
proceeds totaled US $1.14 billion. The pre-tax and after-tax gains on the
sale were approximately $29 million and $361 million, respectively. All prior
period financial information has been restated to reflect Carter Holt Harvey
Ltd. as a discontinued operation.
EFFECTIVE TAX RATE
The effective tax rate excluding special items for the third quarter of
2005 was 23 percent, compared with a tax rate of 35 percent in the 2005 second
quarter. The lower tax rate in the 2005 third quarter reflected the reduction
of the projected 2005 full-year tax rate to 27 percent.
EFFECTS OF SPECIAL ITEMS
Special items in the third quarter included a pretax charge of $70 million
($48 million after taxes) for organizational restructuring charges and losses
on debt extinguishment, a pretax credit of $188 million ($109 million after
taxes) for insurance recoveries related to the hardboard siding and roofing
litigation, a $5 million pretax charge ($3 million after taxes) for
adjustments of losses on businesses previously sold, and a $3 million pretax
credit ($2 million after taxes) for the net adjustment of previously provided
reserves. In addition, a $517 million income tax benefit was recorded,
principally as a result of an agreement reached with the U.S. Internal Revenue
Service concerning the 1997 through 2000 U.S. federal income tax audit. Net
interest expense also includes a $43 million pretax credit ($26 million after
taxes) relating to this agreement. The net after-tax effect of all of these
special items was a credit of $1.19 per share.
Special items in the second quarter included a pretax charge of $31
million ($19 million after taxes) for organizational restructuring charges, a
pretax credit of $35 million ($21 million after taxes) for insurance
recoveries related to the hardboard siding and roofing litigation, and a $19
million pretax credit ($12 million after taxes) for net adjustments of losses
on businesses previously sold, including a $25 million credit from the
collection of a note receivable from the 2001 sale of the Flexible Packaging
business. In addition, net interest expense included pretax interest income
of $11 million ($7 million after taxes) collected on this note. Additionally,
a $94 million increase in the income tax provision was recorded principally
for deferred taxes related to earnings repatriated during the quarter under
the American Jobs Creation Act of 2004. The net after-tax effect of all of
these special items was an expense of $0.15 per share.
Special items in the 2004 third quarter included a charge of $26 million
before taxes ($16 million after taxes) for restructuring and other costs, a
pre-tax credit of $103 million ($64 million after taxes) for insurance
recoveries related to the hardboard siding and roofing litigation, a charge of
$38 million for estimated losses on sales and impairments of businesses held
for sale and a $6 million credit ($4 million after taxes) for the net reversal
of restructuring and realignment reserves no longer required. The net after-
tax effect of all of these special items was a credit of $0.03 per share.
EARNINGS WEBCAST
The company will hold a webcast to review earnings at 10 a.m. Eastern
Daylight Time today. All interested parties are invited to listen to the
webcast live via the company's Internet site at
http://www.internationalpaper.com by clicking on the Investors tab and going
to the Presentations page. A replay of the webcast will also be available on
the Web site beginning at noon today. Parties who wish to participate in the
webcast via teleconference may dial 706-679-8242 or, within the U.S. only,
877-316-2541 and ask to be connected to the International Paper 3Q 2005
Earnings Call. The conference ID number is 1305755. Participants should call
in no later than 9:45 a.m. EDT. An audio-only replay will be available for
four weeks following the call. To access the replay, dial 706-645-9291 or,
within the U.S. only, 800-642-1687, and when prompted for the conference ID,
enter "1305755."
Headquartered in the United States, International Paper
(http://www.internationalpaper.com) is the world's largest paper and forest
products company. Businesses include paper, packaging, and forest products.
As one of the largest private forest landowners in the world, the company
manages its forests under the principles of the Sustainable Forestry
Initiative(R) (SFI) program, a system that ensures the continual planting,
growing and harvesting of trees while protecting wildlife, plants, soil, air
and water quality.
This press release contains forward-looking statements. These statements
reflect management's current views and are subject to risks and uncertainties
that could cause actual results to differ materially from those expressed or
implied in these statements. Factors which could cause actual results to
differ relate to (i) market and economic factors, including changes in the
cost or availability of raw materials and energy, competition, demand and
pricing for the Company's products, the level of housing starts, changes in
international economic conditions, specifically in Brazil, Russia, Poland and
China, changes in currency exchange rates, changes in credit ratings issued by
nationally recognized statistical rating organizations, pension and healthcare
costs and natural disasters, such as hurricanes, (ii) the Company's
transformation plan, including the ability to accomplish the transformation
plan, the impact of the plan on the Company's relationship with its employees,
customers and vendors and the ability to realize anticipated profit
improvement from the plan, and (iii) results of legal proceedings and
compliance costs, including unanticipated expenditures related to the cost of
compliance with environmental and other governmental regulations and the
uncertainty of the costs and other effects of pending litigation. We
undertake no obligation to publicly update any forward-looking statements,
whether as a result of new information, future events or otherwise. These and
other factors that could cause or contribute to actual results differing
materially from such forward-looking statements are discussed in greater
detail in the company's Securities and Exchange Commission filings.
International Paper
Summary of Consolidated Earnings
Preliminary and Unaudited
(In millions except for net sales and per share amounts)
Three Months Ended Three Months Ended
Ended September 30, June 30,
2005 2004 2005
Net Sales (In billions) $6.0 $6.0 $5.9
Earnings From Continuing
Operations Before
Interest Income Taxes,
and Minority
Interest 492 (a) 513 (e) 414 (g)
Interest expense, net 120 (b) 180 155 (h)
Earnings From Continuing
Operations Before
Income Taxes and
Minority Interest 372 (a,b) 333 (e) 259 (g,h)
Income tax provision
(benefit) (396)(c) 114 186 (i)
Minority interest
expense, net of
taxes 3 5 3
Earnings From Continuing
Operations 765 (a-c) 214 (e) 70 (g-i)
Discontinued Operation,
net of taxes and
minority interest 278 (d) (684)(f) 7
Net Earnings $1,043 (a-d) $(470)(e,f) $77 (g-i)
Diluted Earnings
Per Share:
Earnings From Continuing $1.52 (a-c) $0.43 (e) $0.14 (g-i)
Operations
Discontinued Operation,
net of taxes and minority
interest 0.55 (d) (1.34)(f) 0.02
Diluted Earnings
Per Common
Share $2.07 (a-d) $(0.91)(e,f) 0.16 (g-i)
Average Shares of
Common Stock
Outstanding
-- Diluted 507.1 509.0 487.4
Nine Months Ended
September 30,
2005 2004
Net Sales (In billions) $18.0 $17.3
Earnings From Continuing
Operations Before
Interest Income Taxes,
and Minority Interest 1,193 (j) 1,071 (m)
Interest expense, net 442 (k) 541
Earnings From Continuing
Operations Before
Income Taxes and
Minority Interest 751 (j,k) 530 (m)
Income tax provision
(benefit) (193) (l) 215 (n)
Minority interest
expense, net of
taxes 8 21
Earnings From Continuing
Operations 936 (j,li) 294 (m,n)
Discontinued Operation,
net of taxes and
minority interest 261 (d) (498)(o)
Net Earnings $1,197 (d,j-l) $(204)(f,m-o)
Diluted Earnings
Per Share:
Earnings From Continuing
Operations $1.88 (j-l) $0.60 (m,n)
Discontinued Operation,
net of taxes and minority
interest 0.52 (d) (1.02)(o)
Diluted Earnings
Per Common Share $2.40 (d,j-l) $(0.42)(m-o)
Average Shares of
Common Stock Outstanding
-- Diluted 507.5 488.2
Note: All periods have been restated to reflect Carter Holt Harvey as a
discontinued operation.
(a) Includes a pre-tax charge of $70 million ($48 million after taxes) for
organizational restructuring programs and losses on debt
extinguishment; a $188 million credit before taxes ($109 million after
taxes) for insurance recoveries related to the hardboard siding
litigation; a $3 million credit before taxes ($2 million after taxes)
for the net adjustment of reserves previously provided; and a $5
million pre-tax charge ($3 million after taxes) for net adjustments of
losses on businesses previously sold.
(b) Includes interest income of $43 million before taxes ($26 million
after taxes) related to a tax audit agreement.
(c) Includes a $517 million reduction in the income tax provision,
principally as a result of an agreement reached with the U.S. Internal
Revenue Service concerning the 1997 through 2000 U.S. federal income
tax audit.
(d) Includes a $29 million pre-tax gain ($361 million after taxes) from
the sale of IP's interest in Carter Holt Harvey Ltd., plus the CHH
portion of the income tax audit agreement.
(e) Includes a $26 million charge before taxes ($16 million after taxes)
for organizational restructuring programs and losses on early debt
extinguishment; a credit of $103 million ($64 million after taxes) for
insurance recoveries related to the hardboard siding and roofing
litigation; a $38 million before and after tax charge for estimated
losses on sales of businesses; and a credit of $6 million before taxes
($4 million after taxes) for the reversal of restructuring and
realignment reserves no longer required.
(f) Includes a $716 million after-tax charge to write down the net assets
of Weldwood of Canada, Ltd. to their estimated net realizable value,
and the net earnings of Weldwood and Carter Holt Harvey for the
quarter.
(g) Includes a pretax charge of $31 million ($19 million after taxes) for
organizational restructuring programs; a $35 million credit before
taxes ($21 million after taxes) for insurance recoveries related to
the hardboard siding and roofing litigation; and a $19 million pre-tax
credit ($12 million after taxes) for net adjustments of losses on
businesses previously sold, including $25 million ($15 million after
taxes) from the collection of a note receivable from the 2001 sale of
the Flexible Packaging business.
(h) Includes interest income of $11 million before taxes ($7 million after
taxes) from the collection of a note receivable from the 2001 sale of
the Flexible Packaging business.
(i) Includes a $94 million increase in the income tax provision,
principally for deferred taxes related to earnings repatriated during
the quarter under the American Jobs Creation Act of 2004.
(j) Includes a pre-tax charge of $65 million ($43 million after taxes) for
estimated losses on businesses previously sold; a $125 million charge
before taxes ($82 million after taxes) for organizational
restructuring programs and losses on early debt extinguishment; a $223
million pre-tax credit ($130 million after taxes) for insurance
recoveries related to the hardboard siding and roofing litigation; and
a $3 million before tax credit ($2 million after taxes) for the net
adjustment of reserves previously provided.
(k) Includes interest income of $43 million before taxes ($26 million
after taxes) related to a tax audit agreement, and interest
income of $11 million before taxes ($7 million after taxes) from the
collection of a note receivable from the 2001 sale of the Flexible
Packaging business.
(l) Includes a $517 million reduction in the income tax provision,
principally as a result of an agreement reached with the U.S. Internal
Revenue Service concerning the 1997 through 2000 U.S. federal income
tax audit; a $94 million charge principally for deferred taxes related
to earnings repatriation during the second quarter under the American
Jobs Creation Act of 2004, and a $19 million reduction in the income
tax provision reflecting the settlement of a tax matter.
(m) Includes a $153 million charge before taxes and minority interest ($95
million after taxes and minority interest) for organizational
restructuring programs and losses on early debt extinguishment; a
pretax credit of $103 million ($64 million after taxes) for insurance
recoveries related to the hardboard siding and roofing litigation;
a charge of $60 million before taxes and minority interest ($61
million after taxes and minority interest) for estimated gains/losses
of businesses sold or held for sale; and a credit of $19 million
before taxes and minority interest ($11 million after taxes and
minority interest) for the net reversal of restructuring and
realignment reserves no longer required.
(n) Includes a $32 million net increase in the income tax provision
reflecting an adjustment of deferred tax balances.
(o) Includes the net income of Weldwood of Canada, Ltd. and Carter Holt
Harvey prior to their sales in the fourth quarter of 2004 and the
third quarter of 2005, respectively, a $716 million after-tax charge
to write down the net assets of Weldwood of Canada, Ltd. to their
estimated net realizable value in the third quarter of 2004; and a
gain on the sale of the Carter Holt Harvey tissue business of $267
million ($90 million after taxes and minority interest) in the second
quarter of 2004.
International Paper
Reconciliation of Earnings Before
Special Items to Net Earnings (Loss)
Preliminary and Unaudited
(In millions except for per share amounts)
Three
Three Months Months Nine Months
Ended Ended Ended
September 30, June 30, September 30,
2005 2004 2005 2005 2004
Earnings Before
Special Items $162 $200 $143 $473 $407
Restructuring and
other charges (48) (16) (19) (82) (95)
Insurance recoveries 109 64 21 130 64
Reversals of reserves
no longer required 2 4 - 2 11
Net gains (losses) on
sales and impairments
of businesses held
for sale (3) (38) 12 (43) (61)
Interest income 26 - 7 33 -
Income tax adjustment 517 - (94) 423 (32)
Earnings from
Continuing Operations 765 214 70 936 294
Discontinued
Operations 278 (684) 7 261 (498)
Net Earnings (Loss)
as Reported $1,043 $(470) $77 $1,197 $(204)
Three
Three Months Months Nine Months
Diluted Earnings Ended Ended Ended
Per Common Share: September 30, June 30, September 30,
2005 2004 2005 2005 2004
Earnings Per Share Before
Special Items $0.33 $0.40 $0.29 $0.97 $0.83
Restructuring and
other charges (0.09) (0.03) (0.04) (0.16) (0.19)
Insurance recoveries 0.21 0.13 0.04 0.26 0.13
Reversal of reserves
no longer required - 0.01 - - 0.03
Net gains (losses)
on sales and
impairments
of businesses
held for sale - (0.08) 0.03 (0.08) (0.13)
Interest income 0.05 - 0.01 0.06 -
Income tax
adjustment 1.02 - (0.19) 0.83 (0.07)
Earnings Per Common
Share from
Continuing
Operations 1.52 0.43 0.14 1.88 0.60
Discontinued
Operations 0.55 (1.34) 0.02 0.52 (1.02)
Diluted Earnings
(Loss) per Common
Share $2.07 $(0.91) $0.16 $2.40 $(0.42)
Notes:
(1) All periods have been restated to reflect Carter Holt Harvey as a
discontinued operation.
(2) The company calculates Earnings Before Special Items by excluding the
after-tax effect of the adoption of new accounting standards and items
considered by management to be unusual from the net earnings (loss)
reported under U.S. generally accepted accounting principles ("GAAP").
Management uses this measure to focus on on-going operations, and
believes that it is useful to investors because it enables them to
perform meaningful comparisons of past and present operating results.
International Paper believes that using this information along with
net earnings (loss) provides for a more complete analysis of the
results of operations by quarter. Net earnings (loss) is the most
directly comparable GAAP measure.
(3) Diluted earnings per common share reflects the inclusion of
contingently convertible securities in the computation.
(4) Since the basic and diluted earnings per share are computed
independently for each period, nine-month per share amounts may not
equal the sum of the respective quarters.
International Paper
Sales and Operating Profit by Industry Segment
Preliminary and Unaudited
(In Millions)
Sales by Industry Segment
Three
Three Months Months Nine Months
Ended Ended Ended
September 30, June 30, September 30,
2005 2004(1) 2005 2005 2004(1)
Printing Papers $1,970 $1,930 $1,895 $5,850 $5,685
Industrial
Packaging(2) 1,115 1,330 1,240 3,650 3,535
Consumer
Packaging(2) 685 665 650 1,965 1,920
Distribution 1,645 1,565 1,570 4,745 4,515
Forest Products 700 600 605 1,915 1,825
Other Businesses(3) 220 275 230 725 860
Less:
Intersegment
Sales (299) (349) (274) (887) (998)
$6,036 $6,016 $5,916 $17,963 $17,342
Operating Profit by Industry Segment
Three
Three Months Months Nine Months
Ended Ended Ended
September 30, June 30, September 30,
2005 2004(1) 2005 2005 2004(1)
Printing Papers $132 (4) $160 $149 (7) $464 (4,7) $385
Industrial
Packaging(2) 33 (4) 133 85 223 (4) 249
Consumer
Packaging(2) 37 (4) 50 41 101 (4) 122 (9)
Distribution 23 27 18 59 65
Forest Products 272 (4) 191 191 (7) 670 (4,7) 617
Other Businesses(3) (8) (4) 7 7 9 (4) 31
Operating Profit 489 568 491 1,526 1,469
Interest
expense, net (120) (5) (180) (155) (8) (442) (5,8) (541)
Minority
interest(6) - 1 2 1 2
Corporate items,
net (142) (101) (133) (430) (313)
Restructuring
and other
charges (41) (26) (65) (153)
Insurance
Recoveries 188 103 35 223 103
Net gains
(losses)
on sales and
impairments of
businesses held
for sale (5) (38) 19 (65) (56)
Reversal of
reserves no
longer
required 3 6 - 3 19
Earnings from
continuing
operations
before
income taxes
and
minority
interest $372 $333 $259 $751 $530
Note: All periods have been restated to reflect Carter Holt Harvey as a
discontinued operation.
(1) Prior-year industry information has been restated to conform to 2005
management structure.
(2) Beginning with the 2005 first quarter, Industrial Packaging and
Consumer Packaging are reported as separate industry segments.
Prior-period segment information has been restated to reflect this
presentation.
(3) Includes Arizona Chemical, European Distribution and certain smaller
businesses.
(4) Includes 2005 third quarter special charges of $6 million before taxes
in the Printing Papers segment for severance charges related to the
indefinite shutdown of three U.S. paper machines, $3 million before
taxes in the Printing Papers segment and $1 million before taxes in
the Consumer Packaging segment for environmental reserves, $4 million
before taxes in the Industrial Packaging segment related to adjust
reserves previously provided, $2 million before taxes in the Forest
Products segment for costs associated with relocating the headquarters
to Memphis, Tenn. from Savannah, Ga., and $13 million before taxes in
the Other Businesses segment related to a plant shutdown.
(5) Includes interest income of $43 million before taxes related to
completion of a tax audit.
(6) Operating profits for industry segments include each segment's
percentage share of the profits of subsidiaries included in that
segment that are less than wholly owned. The pre-tax minority
interest for these subsidiaries is added here to present consolidated
earnings before income taxes and minority interest.
(7) Includes 2005 second quarter special charges of $17 million before
taxes in the Printing Papers segment for severance and other charges
related to the indefinite shutdown of three U.S. paper machines, and
$14 million before taxes in the Forest Resources segment for 2005
second quarter costs associated with relocating the Forest Products
headquarters to Memphis, Tenn. from Savannah, Ga.
(8) Includes interest income of $11 million before taxes from the
collection of a note receivable from the 2001 sale of the Flexible
Packaging business.
(9) Includes a 2004 second quarter estimated loss on the sale of Food Pack
S.A. of $4 million before taxes in the Consumer Packaging segment.
International Paper
Supplemental Financial Data
Preliminary and Unaudited
Financial Data (In millions)
Three Months Three Months Nine Months
Ended Ended Ended
Sept 30, June 30, Sept 30,
2005 2004 2005 2005 2004
Depreciation,
amortization and cost of
timber harvested $350 $346 $333 $1,023 $1,003
Note: All periods have been restated to reflect Carter Holt Harvey as a
discontinued operation.
Sales Volumes by Product(1)(2)
Preliminary and Unaudited
International Paper Consolidated
Three Months Three Months Nine Months
Ended Ended Ended
Sept 30, June 30, Sept 30,
2005 2004 2005 2005 2004
Printing Papers (In
thousands of short
tons)
Brazil Uncoated Papers 111 117 107 330 345
Europe & Russia
Uncoated Papers
and Bristols 342 336 358 1,059 1,036
U.S. Uncoated
Papers and Bristols 1,041 1,143 1,022 3,197 3,488
Uncoated Papers
and Bristols 1,494 1,596 1,487 4,586 4,869
Coated Papers 572 574 504 1,582 1,641
Market Pulp(3) 402 309 382 1,149 1,048
Packaging (In thousands
of short tons)
Container of the
Americas 752 795 777 2,294 2,053
European Container
(Boxes) 262 256 273 794 767
Other Industrial
and Consumer
Packaging 264 278 268 788 796
Industrial and
Consumer Packaging 1,278 1,329 1,318 3,876 3,616
Containerboard 467 556 438 1,375 1,629
Bleached Packaging Board 341 378 351 1,063 1,128
Kraft 155 170 151 456 468
Forest Products (In
millions)
Panels (sq. ft.
3/8" -- basis) 444 411 367 1,212 1,201
Lumber (board
feet) 675 644 663 1,951 1,850
(1) Sales volumes include third party and inter-segment sales.
(2) Sales volumes for divested businesses are included through the date of
sale, except for discontinued operations.
(3) Includes internal sales to mills.
International Paper
Consolidated Balance Sheet
Preliminary and Unaudited
(In Millions)
September 30, June 30, December 31,
2005 2005 2004
Assets
Current Assets
Cash and temporary investments $1,092 $1,137 $2,180
Accounts and notes receivable, net 3,076 2,853 2,743
Inventories 2,427 2,449 2,371
Assets of businesses held for sale 57 4,315 4,729
Deferred income tax assets 389 394 410
Other current assets 180 167 153
Total Current Assets 7,221 11,315 12,586
Plants, Properties and Equipment, net 11,850 11,848 12,216
Forestlands 2,207 2,198 2,157
Investments 597 624 655
Goodwill 5,043 5,012 4,994
Deferred Charges and Other Assets 1,533 1,549 1,609
Total Assets $28,451 $32,546 $34,217
Liabilities and Common Shareholders'
Equity
Current Liabilities
Notes payable and current
maturities of long-term debt $796 $388 $222
Liabilities of businesses held
for sale 51 2,940 3,165
Accounts payable and accrued
liabilities 3,516 3,612 3,947
Total Current Liabilities 4,363 6,940 7,334
Long-Term Debt 10,772 12,354 13,632
Deferred Income Taxes 977 1,227 1,118
Other Liabilities 3,249 3,743 3,691
Minority Interest 203 186 188
Common Shareholders' Equity
Invested capital 5,496 5,626 5,692
Retained earnings 3,391 2,470 2,562
Total Common Shareholders'
Equity 8,887 8,096 8,254
Total Liabilities and Common
Shareholders' Equity $28,451 $32,546 $34,217
Note: All periods have been restated to reflect Carter Holt Harvey as a
discontinued operation.
SOURCE International Paper
Media: Amy Sawyer, +1-203-541-8308, Investors: Darial Sneed, +1-203-541-8541, or
Brian Turcotte, +1-203-541-8632, both of International Paper