MEMPHIS, Tenn., Oct. 29, 2020 /PRNewswire/ -- International
Paper (NYSE: IP) today reported third quarter 2020 financial
results.
THIRD QUARTER 2020 HIGHLIGHTS
- Third quarter net earnings (loss) attributable to
International Paper of $204 million
($0.52 per diluted share), compared
with $266 million ($0.67 per diluted share) in the second quarter of
2020 and $344 million ($0.87 per diluted share) in the third quarter of
2019
- Third quarter adjusted operating earnings* (non-GAAP) of
$280 million ($0.71 per diluted share) compared with
$305 million ($0.77 per diluted share) in the second quarter of
2020 and $431 million ($1.09 per diluted share) in the third quarter of
2019
- Third quarter cash provided by operations of $735 million and year-to-date of $2.3 billion compared with $2.7 billion year-to-date in the same period of
2019
- Third quarter debt reduction of $760
million, bringing year-to-date 2020 to $1.1 billion
"International Paper once again delivered solid results and
generated strong cash from operations in a dynamic environment,"
said Mark Sutton, Chairman and Chief
Executive Officer. "Our performance continues to demonstrate the
strength of our customer solutions and the scale and flexibility of
our system. As we enter the fourth quarter, we see continued
momentum in demand for corrugated packaging, and we will again
leverage the commercial and operating strengths of International
Paper with a focus on cash generation and maintaining a strong
balance sheet."
Sutton added, "The health and safety of our employees remains
our most important responsibility. I appreciate the dedication of
our team members to safely produce and deliver the products people
depend on every day."
Diluted Net EPS
Attributable to International Paper Shareholders and Adjusted
Operating EPS
|
|
|
|
Third
Quarter
2020
|
|
Second
Quarter
2020
|
|
Third
Quarter
2019
|
Net Earnings (Loss)
Attributable to International Paper
|
|
$
|
0.52
|
|
|
$
|
0.67
|
|
|
$
|
0.87
|
|
Add Back –
Non-Operating Pension Expense (Income)
|
|
(0.02)
|
|
|
(0.03)
|
|
|
0.02
|
|
Add Back – Net
Special Items Expense (Income)
|
|
0.21
|
|
|
0.13
|
|
|
0.20
|
|
Adjusted Operating
Earnings*
|
|
$
|
0.71
|
|
|
$
|
0.77
|
|
|
$
|
1.09
|
|
|
*
|
Adjusted operating
earnings (non-GAAP) is defined as net earnings attributable to
International Paper Company (GAAP) excluding net special items and
non-operating pension expense (income). 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 consolidated operating results. For
discussion of net special items and non-operating pension expense
(income), see the disclosure under Effects of Net Special Items and
Consolidated Statement of Operations and related notes included
later in this release.
|
Select Financial
Measures
|
|
(In
millions)
|
|
Third
Quarter
2020
|
|
Second
Quarter
2020
|
|
Third
Quarter
2019
|
|
Net Sales
|
|
$
|
5,123
|
|
|
$
|
4,866
|
|
|
$
|
5,568
|
|
|
Net Earnings (Loss)
Attributable to International Paper
|
|
204
|
|
|
266
|
|
|
344
|
|
|
Business Segment
Operating Profit
|
|
473
|
|
|
428
|
|
|
701
|
|
|
Adjusted Operating
Earnings
|
|
280
|
|
|
305
|
|
|
431
|
|
|
Cash Provided By
(Used For) Operations
|
|
735
|
|
|
890
|
|
|
882
|
|
|
Free Cash
Flow*
|
|
616
|
|
|
638
|
|
|
597
|
|
|
|
*
|
Free cash flow is a
non-GAAP financial measure. A reconciliation of free cash flow to
the most comparable GAAP measure, cash provided by (used for)
operations, and disclosure regarding why we believe that free cash
flow provides useful information to investors, is included later in
this release.
|
SEGMENT INFORMATION
Business segment operating profits
are used by International Paper's management to measure the
earnings performance of its businesses and is calculated as set
forth in footnote (i) below under "Sales and Earnings by Business
Segment." Third quarter 2020 net sales by business segment and
operating profit (loss) by business segment compared with the
second quarter of 2020 and the third quarter of 2019 are as
follows:
Business Segment
Results
|
|
(In
millions)
|
|
Third
Quarter
2020
|
|
Second
Quarter
2020
|
|
Third
Quarter
2019
|
Net Sales by
Business Segment
|
|
|
|
|
|
|
Industrial
Packaging
|
|
$
|
3,768
|
|
|
$
|
3,633
|
|
|
$
|
3,820
|
|
Global Cellulose
Fibers
|
|
564
|
|
|
605
|
|
|
624
|
|
Printing
Papers
|
|
743
|
|
|
583
|
|
|
1,071
|
|
Corporate and
Inter-segment Sales
|
|
48
|
|
|
45
|
|
|
53
|
|
Net
Sales
|
|
$
|
5,123
|
|
|
$
|
4,866
|
|
|
$
|
5,568
|
|
Operating Profit
(Loss) by Business Segment
|
|
|
|
|
|
|
Industrial
Packaging
|
|
$
|
469
|
|
|
$
|
449
|
|
|
$
|
535
|
|
Global Cellulose
Fibers
|
|
(59)
|
|
|
(10)
|
|
|
4
|
|
Printing
Papers
|
|
63
|
|
|
(11)
|
|
|
162
|
|
Total Business
Segment Operating Profit
|
|
$
|
473
|
|
|
$
|
428
|
|
|
$
|
701
|
|
Industrial Packaging operating profits in the third
quarter of 2020 were $469 million
compared with $449 million in the
second quarter of 2020. In North
America, earnings increased reflecting higher sales volumes
for boxes, lower economic downtime and lower recycled fiber costs.
Operating costs increased, driven by multiple weather events
impacting our mill system and seasonality in our box plants.
Planned maintenance outage expenses were also higher. Earnings
benefited in both the third and second quarter of 2020 from
insurance recoveries related to the Rome fire and Bogalusa recovery boiler event.
In Europe, earnings decreased
driven by lower seasonal margins reflecting an unfavorable product
mix and increased planned maintenance outage expenses at our
Madrid, Spain mill. Sales volumes
improved, as the impacts of the COVID-19 pandemic showed some
recovery in all regions at the end of the third quarter, partially
offset by seasonally lower volumes in Morocco. Operating costs were lower, driven by
solid operational performance and cost management.
Global Cellulose Fibers operating profits (losses) in the
third quarter of 2020 were $(59)
million compared with $(10)
million in the second quarter of 2020. The third quarter was
impacted by higher planned maintenance outage expenses and economic
downtime. Average sales prices were higher. Sales volumes were
seasonally lower and reflect slower COVID-19 pandemic related
consumer demand. Operating costs were lower driven by seasonality
and favorable one-time items in the third quarter of 2020. Input
costs were higher, primarily for wood and energy.
Printing Papers operating profits (losses) in the
third quarter of 2020 were $63
million compared with $(11)
million in the second quarter of 2020. In North America, earnings increased driven by
higher sales volumes and lower economic downtime reflecting signs
of recovery from the unprecedented demand impact of the COVID-19
pandemic. Average sales margins were slightly lower, reflecting an
unfavorable mix. Operating and input costs were stable. Planned
maintenance outage expenses were also lower. In Brazil, earnings increased due to higher sales
volumes and lower economic downtime reflecting signs of recovery
from the demand impacts of the COVID-19 pandemic. These benefits
were partially offset by lower average sales margins primarily
driven by lower export sales prices and an unfavorable geographic
mix. In Europe and Russia, earnings improved but continue to be
impacted by the COVID-19 pandemic. Sales volumes increased in
Russia and were stable in
Europe. Economic downtime was
lower. Average sales margins decreased, reflecting lower sales
prices and an unfavorable mix. Operating costs were lower,
partially offset by higher maintenance outage costs.
EQUITY METHOD INVESTMENTS
Ilim joint
venture equity earnings (loss) were $(33) million in the third quarter of 2020
compared with $63 million in the
second quarter of 2020. Operationally, earnings decreased primarily
driven by higher planned maintenance outage expenses. Lower export
and domestic sales prices for hardwood pulp, softwood pulp and
paper were mostly offset by higher sales volumes to China. The Company recognized a non-cash
after-tax foreign exchange loss of $55
million in the third quarter of 2020 ($0.14 per diluted share), compared with a gain of
$34 million in the second quarter of
2020 ($0.09 per diluted share),
primarily due to Ilim's U.S. dollar denominated net debt.
Graphic Packaging equity earnings on our 14.8% ownership
position were $11 million in the
third quarter of 2020, compared with $11
million in the second quarter of 2020.
CORPORATE EXPENSES
Corporate expenses (income) were
$(20) million for the third quarter
of 2020, compared with $(3) million
in the second quarter of 2020.
EFFECTIVE TAX RATE
The reported effective tax rate for
the third quarter of 2020 was 18%, compared to a 2020 second
quarter reported effective tax rate of 26%. Excluding net special
items and non-operating pension expense, the operational effective
tax rate for the third quarter of 2020 was 19%, compared with 26%
for the second quarter of 2020. Both the reported and operational
effective tax rates are lower in the third quarter as a result of
tax benefits recognized after the finalization of the 2019 U.S.
Federal income tax return. The tax benefits recorded in the
third quarter are primarily related to increased U.S. research and
development tax credits and lower than estimated U.S. income taxes
on foreign earnings.
EFFECTS OF NET SPECIAL ITEMS
Net special items in the
third quarter of 2020 amount to a net after-tax charge of
$83 million ($0.21 per diluted
share) compared with $50 million
($0.13 per diluted share) in the
second quarter of 2020 and $80
million ($0.20 per diluted
share) in the third quarter of 2019. Net special items in all
periods include the following charges (gains):
|
|
Third Quarter
2020
|
|
Second Quarter
2020
|
|
Third Quarter
2019
|
(In
millions)
|
|
Before
Tax
|
|
After
Tax
|
|
Before
Tax
|
|
After
Tax
|
|
Before
Tax
|
|
After
Tax
|
Restructuring
and other charges, net:
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt extinguishment
costs
|
|
$
|
105
|
|
|
$
|
79
|
|
|
$
|
18
|
|
|
$
|
13
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Overhead cost
reduction initiative
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
21
|
|
|
16
|
|
Total
restructuring and other charges, net
|
|
105
|
|
|
79
|
|
|
18
|
|
|
13
|
|
|
21
|
|
|
16
|
|
Environmental
remediation reserve adjustment
|
|
7
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|
15
|
|
|
11
|
|
Brazil Packaging
impairment
|
|
(4)
|
|
|
(2)
|
|
|
8
|
|
|
6
|
|
|
—
|
|
|
—
|
|
Asbestos litigation
reserve adjustment (a)
|
|
—
|
|
|
—
|
|
|
43
|
|
|
33
|
|
|
—
|
|
|
—
|
|
Abandoned property
removal
|
|
—
|
|
|
—
|
|
|
5
|
|
|
4
|
|
|
13
|
|
|
10
|
|
Gain on sale of
portion of investment in India
|
|
—
|
|
|
—
|
|
|
(6)
|
|
|
(6)
|
|
|
—
|
|
|
—
|
|
Italian antitrust
fine
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
32
|
|
|
32
|
|
Litigation
reserves
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
22
|
|
|
17
|
|
India Papers
impairment
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
6
|
|
Gain on sale of
previously closed Oregon mill site
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9)
|
|
|
(7)
|
|
Multi-employer
pension plan exit liability adjustment
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(7)
|
|
|
(6)
|
|
Other
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
Total net
special items
|
|
$
|
109
|
|
|
$
|
83
|
|
|
$
|
68
|
|
|
$
|
50
|
|
|
$
|
94
|
|
|
$
|
80
|
|
|
(a)
|
During the quarter
ended June 30, 2020, we adjusted our estimated net liability
associated with asbestos-related litigation concerning products
sold by Champion International Corporation prior to our acquisition
of Champion in 2000 to revise the time horizon associated with
anticipated future claims to forty years. This adjustment of $43
million, which increased this net liability to $75 million, was not
material to the quarter or any period.
|
EARNINGS WEBCAST
The company will host a webcast
today to discuss earnings and current market conditions, beginning
at 10 a.m. ET (9 a.m. CT). All interested parties are invited to
listen to the webcast via the company's website at
internationalpaper.com by clicking on the Performance tab and going
to the Presentations and Events/Webcasts page. A replay of the
webcast will also be on the website beginning approximately two
hours after the call. Parties who wish to participate in the
webcast via teleconference may dial +1 (706) 679-8242 or, within
the U.S. only, (877) 316-2541, and ask to be connected to the
International Paper third quarter earnings call. The conference ID
number is 1379114. Participants should call in no later than
9:45 a.m. ET (8:45 a.m. CT). An audio-only replay will be
available for ninety days following the call. To access the
replay, dial +1 (404) 537-3406 or, within the U.S. only, (855)
859-2056 or (800) 585-8367, and when prompted for the conference
ID, enter 1379114.
About International Paper
International Paper (NYSE:
IP) is a leading global producer of renewable fiber-based
packaging, pulp and paper products with manufacturing operations in
North America, Latin America, Europe, North
Africa and Russia. We
produce corrugated packaging products that protect and promote
goods, and enable world-wide commerce; pulp for diapers, tissue and
other personal hygiene products that promote health and wellness;
and papers that facilitate education and communication. We are
headquartered in Memphis, Tenn.,
employ more than 50,000 colleagues and serve more than 25,000
customers in 150 countries. Net sales for 2019 were $22 billion. For more information about
International Paper, our products and global citizenship efforts,
please visit internationalpaper.com.
Certain statements in this press release that are not historical
in nature may be considered "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995.
Words such as "expects", "anticipates", "believes", "estimates" and
similar expressions identify forward-looking statements. These
statements are not guarantees of future performance and 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 include but are not limited
to: (i) developments related to the COVID-19 pandemic, including
the severity, magnitude and duration of the pandemic, the
development, availability and effectiveness of treatments and
vaccines, negative global economic conditions arising from the
pandemic, impacts of governments' responses to the pandemic on our
operations, impacts of the pandemic on commercial activity, our
customers and business partners and consumer preferences and
demand, supply chain disruptions, and disruptions in the credit or
financial markets; (ii) the level of indebtedness and changes in
interest rates; (iii) industry conditions, including but not
limited to changes in the cost or availability of raw materials,
energy and transportation costs, competition International Paper
faces, cyclicality and changes in consumer preferences, demand and
pricing for International Paper products (including changes
resulting from the COVID-19 pandemic); (iv) domestic and global
economic conditions and political changes, changes in currency
exchange rates, trade protectionist policies, downgrades in
International Paper's credit ratings, and/or the credit ratings of
banks issuing certain letters of credit, issued by recognized
credit rating organizations, (v) the amount of International
Paper's future pension funding obligations, and pension and
health care costs; (vi) unanticipated expenditures or other adverse
developments related to the cost of compliance with existing and
new environmental, tax, labor and employment, privacy, and other
U.S. and non-U.S. governmental laws and regulations (including new
legal requirements arising from the COVID-19 pandemic); (vii) any
material disruption at any of International Paper's manufacturing
facilities due to severe weather, natural disasters or other causes
(including as the result of the COVID-19 pandemic); (viii) risks
inherent in conducting business through joint ventures; (ix)
International Paper's ability to achieve the benefits expected
from, and other risks associated with, acquisitions, joint
ventures, divestitures and other corporate transactions, (x)
information technology risks, and (xi) loss contingencies and
pending, threatened or future litigation, including with respect to
environmental related matters. These and other factors that
could cause or contribute to actual results differing materially
from such forward-looking statements can be found in International
Paper's press releases and U.S. Securities and Exchange Commission
filings. In addition, other risks and uncertainties not
presently known to us or that we currently believe to be immaterial
could affect the accuracy of any forward-looking statements. We
undertake no obligation to publicly update any forward-looking
statements, whether as a result of new information, future events
or otherwise.
INTERNATIONAL
PAPER COMPANY Consolidated Statement of
Operations Preliminary and Unaudited
(In millions, except per share amounts)
|
|
|
|
|
|
Three Months
Ended
September 30,
|
|
Three Months
Ended
June 30,
|
|
Nine Months
Ended
September 30,
|
|
|
|
2020
|
|
2019
|
|
2020
|
|
2020
|
|
2019
|
|
|
Net
Sales
|
$
5,123
|
|
$
5,568
|
|
$
4,866
|
|
$
15,341
|
|
$
16,878
|
|
|
Costs and
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
products sold
|
3,541
|
(a)
|
3,772
|
(h)
|
3,427
|
(a)
|
10,714
|
(a)
|
11,602
|
(h)
|
|
Selling and
administrative expenses
|
360
|
(b)
|
387
|
|
332
|
|
1,110
|
(b)
|
1,202
|
|
|
Depreciation,
amortization and cost of timber
harvested
|
320
|
|
327
|
(i)
|
312
|
|
955
|
(c)
|
963
|
(i)
|
|
Distribution
expenses
|
377
|
|
395
|
|
365
|
|
1,149
|
|
1,168
|
|
|
Taxes other than
payroll and income taxes
|
44
|
|
42
|
|
41
|
|
129
|
|
128
|
|
|
Restructuring and
other charges, net
|
105
|
(d)
|
21
|
(j)
|
18
|
(d)
|
131
|
(d)
|
21
|
(j)
|
|
Antitrust
fines
|
—
|
|
32
|
(k)
|
—
|
|
—
|
|
32
|
(k)
|
|
Net (gains) losses on
sales and impairments of businesses
|
(5)
|
(e)
|
8
|
(l)
|
8
|
(e)
|
347
|
(e)
|
153
|
(l)
|
|
Net (gains) losses on
sales of equity method investments
|
(2)
|
|
—
|
|
—
|
|
(35)
|
(f)
|
—
|
|
|
Interest expense,
net
|
112
|
(g)
|
123
|
|
116
|
|
345
|
(g)
|
378
|
(m)
|
|
Non-operating pension
expense (income)
|
(11)
|
|
9
|
|
(14)
|
|
(31)
|
|
27
|
|
|
Earnings (Loss)
Before Income Taxes and Equity Earnings
|
282
|
|
452
|
|
261
|
|
527
|
|
1,204
|
|
|
Income tax provision
(benefit)
|
50
|
|
137
|
|
67
|
|
211
|
|
371
|
(n)
|
|
Equity earnings
(loss), net of taxes
|
(28)
|
|
27
|
|
72
|
|
13
|
|
221
|
|
|
Net Earnings
(Loss)
|
204
|
|
342
|
|
266
|
|
329
|
|
1,054
|
|
|
Less: Net earnings
(loss) attributable to noncontrolling interests
|
—
|
|
(2)
|
(o)
|
—
|
|
—
|
|
(6)
|
(o)
|
|
Net Earnings
(Loss) Attributable to International Paper Company
|
$
204
|
|
$
344
|
|
$
266
|
|
$
329
|
|
$
1,060
|
|
|
Basic Earnings Per
Common Share Attributable to International Paper
Common Shareholders
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
(loss)
|
$
0.52
|
|
$
0.88
|
|
$
0.67
|
|
$
0.84
|
|
$
2.67
|
|
|
Diluted Earnings
Per Common Share Attributable to International Paper
Common Shareholders
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
(loss)
|
$
0.52
|
|
$
0.87
|
|
$
0.67
|
|
$
0.83
|
|
$
2.65
|
|
|
Average Shares of
Common Stock Outstanding - Diluted
|
394.6
|
|
395.4
|
|
393.1
|
|
394.5
|
|
399.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The accompanying
notes are an integral part of this consolidated statement of
operations.
|
|
|
|
|
|
|
|
|
|
(a)
|
Includes pre-tax
charges of $7 million ($6 million after taxes) and $48 million ($37
million after taxes) for the three months and nine months ended
September 30, 2020, respectively, for environmental remediation
reserve adjustments, a pre-tax charge of $43 million ($33 million
after taxes) for the three months ended June 30, 2020 and the nine
months ended September 30, 2020 for an asbestos litigation reserve
adjustment, pre-tax charges of $5 million ($4 million after taxes)
and $14 million ($11 million after taxes) for the three months
ended June 30, 2020 and the nine months ended September 30, 2020,
respectively, for the removal of abandoned property at our mills, a
gain of $6 million (before and after taxes) for the three months
ended June 30, 2020 and the nine months ended September 30, 2020 on
the sale of our investment in India, a charge of $17 million
(before and after taxes) for the nine months ended September 30,
2020 for the fair value adjustment of our investment in India and
pre-tax income of $2 million ($1 million after taxes) for the nine
months ended September 30, 2020 for the accrual of a foreign
value-added tax refund.
|
|
|
(b)
|
Includes a pre-tax
charge of $3 million ($2 million after taxes) for the three months
and nine months ended September 30, 2020 for other
costs.
|
|
|
(c)
|
Includes a charge of
$1 million (before and after taxes) for the nine months ended
September 30, 2020 for accelerated depreciation associated with the
announced conversion of a paper machine at our Riverdale mill to
containerboard production.
|
|
|
(d)
|
Includes pre-tax
charges of $105 million ($79 million after taxes), $18 million ($13
million after taxes) and $131 million ($98 million after taxes) for
the three months ended September 30, 2020 and June 30, 2020 and the
nine months ended September 30 2020, respectively, for debt
extinguishment costs.
|
|
|
(e)
|
Includes a pre-tax
gain of $6 million ($4 million after taxes) and pre-tax losses of
$5 million ($3 million after taxes) and $19 million ($12 million
after taxes) for the three months ended September 30, 2020 and June
30, 2020 and the nine months ended September 30, 2020,
respectively, for the impairment of the net assets of our Brazil
Packaging business, a loss of $2 million (before and after taxes),
$3 million (before and after taxes) and $329 million (before and
after taxes) for the three months ended September 30, 2020 and June
30, 2020 and the nine months ended September 30, 2020,
respectively, related to the foreign currency cumulative
translation adjustment resulting from the classification of the
assets and liabilities of our Brazil Packaging business as held for
sale and a gain of $1 million (before and after taxes) for the
three months and nine months ended September 30, 2020 for other
items.
|
|
|
(f)
|
Includes a pre-tax
gain of $33 million ($25 million after taxes) for the nine months
ended September 30, 2020 related to the monetization of
approximately 19% of our equity investment in Graphic
Packaging.
|
|
|
(g)
|
Includes income of $1
million (before and after taxes) for the nine months ended
September 30, 2020 for interest income associated with the accrual
of a foreign value-added tax refund and income of $1 million
(before and after taxes) for the three months and nine months ended
September 30, 2020 for other interest income.
|
|
|
(h)
|
Includes a pre-tax
charge of $22 million ($17 million after taxes) for the three
months and nine months ended September 30, 2019 for litigation
reserves, a pre-tax charge of $15 million ($11 million after taxes)
for the three months and nine months ended September 30, 2019 for
an environmental remediation reserve adjustment, pre-tax charges of
$13 million ($10 million after taxes) and $35 million ($26 million
after taxes) for the three months and nine months ended September
30, 2019, respectively, for the removal of abandoned property at
our mills, pre-tax income of $7 million ($6 million after taxes)
and a pre-tax charge of $9 million ($6 million after taxes) for the
three months and nine months ended September 30, 2019,
respectively, for costs associated with a multi-employer pension
plan exit liability and a pre-tax gain of $9 million ($7 million
after taxes) for the three months and nine months ended September
30, 2019 for the sale of a previously closed Oregon mill
site.
|
|
|
(i)
|
Includes charges of
$1 million (before and after taxes) and $3 million (before and
after taxes) for the three months and nine months ended September
30, 2019, respectively, for accelerated depreciation associated
with the announced conversion of a paper machine at our Riverdale
mill to containerboard production.
|
|
|
(j)
|
Includes a pre-tax
charge of $21 million ($16 million after taxes) for the three
months and nine months ended September 30, 2019 related to an
overhead cost reduction initiative.
|
|
|
(k)
|
Includes a charge of
$32 million (before and after taxes) for the three months and nine
months ended September 30, 2019 related to an Italian antitrust
fine.
|
|
|
(l)
|
Includes losses of $2
million (before and after taxes) and $97 million (before and after
taxes) for the three months and nine months ended September 30,
2019, respectively, related to the foreign currency cumulative
translation adjustment resulting from the classification of the
assets and liabilities of our India Papers business as held for
sale, a loss of $6 million (before and after taxes) and a pre-tax
loss of $63 million ($61 million after taxes) for the three months
and nine months ended September 30, 2019, respectively, for the
impairment of the net assets of our India Papers business and a
pre-tax gain of $7 million ($6 million after taxes) for the nine
months ended September 30, 2019 related to the sale of a box plant
in our EMEA Packaging business.
|
|
|
(m)
|
Includes a charge of
$1 million (before and after taxes) for the nine months ended
September 30, 2019 for interest expense associated with foreign tax
audits.
|
|
|
(n)
|
Includes tax expense
of $9 million for the nine months ended September 30, 2019 related
to a tax rate change in Luxembourg, tax expense of $3 million for
the nine months ended September 30, 2019 related to foreign tax
audits and a tax benefit of $3 million for the nine months ended
September 30, 2019 related to state income tax legislative
changes.
|
|
|
(o)
|
Includes the
allocation of loss to noncontrolling interest of $2 million (before
and after taxes) and $9 million (before and after taxes) for the
three months and nine months ended September 30 2019, respectively,
associated with the impairment of the net assets of our India
Papers business.
|
|
INTERNATIONAL
PAPER COMPANY Reconciliation of Net Earnings (Loss)
Attributable to International Paper Company to Adjusted Operating
Earnings Preliminary and Unaudited
(In millions, except per share amounts)
|
|
|
|
|
Three Months
Ended
September 30,
|
|
Three Months
Ended
June 30,
|
|
Nine Months
Ended
September 30,
|
|
|
2020
|
|
2019
|
|
2020
|
|
2020
|
|
2019
|
|
Net Earnings
(Loss) Attributable to International Paper Company
|
$
204
|
|
$
344
|
|
$
266
|
|
$
329
|
|
$
1,060
|
|
Add back:
Non-operating pension expense (income)
|
(7)
|
|
7
|
|
(11)
|
|
(23)
|
|
21
|
|
Add back: Net special
items expense (income)
|
83
|
|
80
|
|
50
|
|
505
|
|
257
|
|
Adjusted Operating
Earnings
|
$
280
|
|
$
431
|
|
$
305
|
|
$
811
|
|
$
1,338
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September 30,
|
|
Three Months
Ended
June 30,
|
|
Nine Months
Ended
September 30,
|
|
|
2020
|
|
2019
|
|
2020
|
|
2020
|
|
2019
|
|
Diluted Earnings
per Common Share as Reported
|
$
0.52
|
|
$
0.87
|
|
$
0.67
|
|
$
0.83
|
|
$
2.65
|
|
Add back:
Non-operating pension expense (income)
|
(0.02)
|
|
0.02
|
|
(0.03)
|
|
(0.05)
|
|
0.05
|
|
Add back: Net special
items expense (income)
|
0.21
|
|
0.20
|
|
0.13
|
|
1.28
|
|
0.65
|
|
Adjusted Operating
Earnings per Share
|
$
0.71
|
|
$
1.09
|
|
$
0.77
|
|
$
2.06
|
|
$
3.35
|
|
|
|
|
|
|
|
|
|
|
|
Notes:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Company
calculates Adjusted Operating Earnings (non-GAAP) by excluding the
after-tax effect of non-operating pension expense (income) and
items considered by management to be unusual (net special items) as
reflected in the Consolidated Statement of Operations and related
notes included in this release from the earnings 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 consolidated operating
results. International Paper believes that using this information,
along with net earnings, provides for a more complete analysis of
the results of operations by quarter. Net earnings (loss)
attributable to International Paper is the most directly comparable
GAAP measure.
|
|
|
|
Since diluted
earnings per share are computed independently for each period,
nine-month per share amounts may not equal the sum of respective
quarters.
|
INTERNATIONAL
PAPER COMPANY Sales and Earnings by Business
Segment Preliminary and Unaudited
(In millions)
|
|
|
Net Sales by
Business Segment
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September 30,
|
|
Three Months
Ended
June 30,
|
|
Nine Months
Ended
September 30,
|
|
|
|
2020
|
|
2019
|
|
2020
|
|
2020
|
|
2019
|
|
|
Industrial
Packaging
|
$
3,768
|
|
$
3,820
|
|
$
3,633
|
|
$
11,220
|
|
$ 11,516
|
|
|
Global Cellulose
Fibers
|
564
|
|
624
|
|
605
|
|
1,737
|
|
1,974
|
|
|
Printing
Papers
|
743
|
|
1,071
|
|
583
|
|
2,234
|
|
3,224
|
|
|
Corporate and
Inter-segment Sales
|
48
|
|
53
|
|
45
|
|
150
|
|
164
|
|
|
Net
Sales
|
$
5,123
|
|
$
5,568
|
|
$
4,866
|
|
$
15,341
|
|
$ 16,878
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Profit
by Business Segment
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September 30,
|
|
Three Months
Ended
June 30,
|
|
Nine Months
Ended
September 30,
|
|
|
|
2020
|
|
2019
|
|
2020
|
|
2020
|
|
2019
|
|
|
Industrial
Packaging
|
$
469
|
|
$
535
|
|
$
449
|
|
$
1,388
|
|
$
1,471
|
|
|
Global Cellulose
Fibers
|
(59)
|
|
4
|
|
(10)
|
|
(123)
|
|
39
|
|
|
Printing
Papers
|
63
|
|
162
|
|
(11)
|
|
148
|
|
420
|
|
|
Total Business
Segment Operating Profit
|
$
473
|
|
$
701
|
|
$
428
|
|
$
1,413
|
|
$
1,930
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (Loss)
Before Income Taxes and Equity Earnings
|
$
282
|
|
$
452
|
|
$
261
|
|
$
527
|
|
$
1,204
|
|
|
Interest expense,
net
|
112
|
(a)
|
123
|
|
116
|
|
345
|
(a)
|
378
|
(d)
|
|
Noncontrolling
interest adjustment (h)
|
—
|
|
2
|
(e)
|
—
|
|
—
|
|
4
|
(e)
|
|
Corporate expenses,
net
|
(20)
|
|
21
|
|
(3)
|
|
9
|
|
45
|
|
|
Corporate net special
items
|
108
|
(b)
|
48
|
(f)
|
54
|
(b)
|
195
|
(b)
|
48
|
(f)
|
|
Business net special
items
|
2
|
(c)
|
46
|
(g)
|
14
|
(c)
|
368
|
(c)
|
224
|
(g)
|
|
Non-operating pension
expense (income)
|
(11)
|
|
9
|
|
(14)
|
|
(31)
|
|
27
|
|
|
Business Segment
Operating Profit (i)
|
$
473
|
|
$
701
|
|
$
428
|
|
$
1,413
|
|
$
1,930
|
|
|
Equity Earnings
(Loss) in Ilim S.A., Net of Taxes
|
$
(33)
|
|
$
18
|
|
$
63
|
|
$
(5)
|
|
$
186
|
|
|
Equity Earnings
(Loss) in Graphic Packaging International Partners,
LLC
|
$
11
|
|
$
10
|
|
$
11
|
|
$
29
|
|
$
37
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Includes income of $1
million for the nine months ended September 30, 2020 for interest
income associated with the accrual of a foreign value-added tax
refund and income of $1 million for the three months and nine
months ended September 30, 2020 for other interest
income.
|
|
|
(b)
|
Includes charges of
$105 million, $18 million and $131 million for the three months
ended September 30, 2020 and June 30, 2020 and the nine months
ended September 30, 2020, respectively, for debt extinguishment
costs, a charge of $43 million for the three months ended June 30,
2020 and the nine months ended September 30, 2020 for an asbestos
litigation reserve adjustment, a charge of $41 million for the nine
months ended September 30, 2020 for an environmental remediation
reserve adjustment, a charge of $17 million for the nine months
ended September 30, 2020 for the fair value adjustment of our
investment in India, a gain of $33 million for the nine months
ended September 30, 2020 related to the monetization of
approximately 19% of our equity investment in Graphic Packaging, a
gain of $6 million for the three months ended June 30 2020 and the
nine months ended September 30, 2020 on the sale of our investment
in India, income of $1 million for the three months ended June 30,
2020 and the nine months ended September 30, 2020 related to the
impairment of the net assets of our Brazil Packaging business and a
charge of $3 million for the three months and nine months ended
September 30, 2020 for other costs.
|
|
|
(c)
|
Related to Industrial
Packaging, includes a gain of $6 million and charges of $6 million
and $20 million for the three months ended September 30, 2020 and
June 30, 2020 and the nine months ended September 30, 2020,
respectively, for the impairment of the net assets of our Brazil
Packaging business, losses of $2 million, $3 million and $329
million for the three months ended September 30, 2020 and June 30,
2020 and the nine months ended September 30, 2020, respectively,
related to the foreign currency cumulative translation adjustment
resulting from the classification of the assets and liabilities of
our Brazil Packaging business as held for sale, charges of $3
million and $9 million for the three months ended June 30, 2020 and
the nine months ended September 30, 2020, respectively, for the
removal of abandoned property at our mills, income of $2 million
for the nine months ended September 30, 2020 for the accrual of a
foreign value-added tax refund and a charge of $1 million for the
three months and nine months ended September 30, 2020 for other
costs.
|
|
|
|
Related to Global
Cellulose Fibers, includes charges of $2 million and $5 million for
the three months ended June 30, 2020 and the nine months ended
September 30, 2020, respectively, for the removal of abandoned
property at our mills.
|
|
|
|
Related to Printing
Papers, includes a charge of $7 million for the three months and
nine months ended September 30, 2020 for an environmental
remediation reserve adjustment, a charge of $1 million for the nine
months ended September 30, 2020 for accelerated depreciation
associated with the announced conversion of a paper machine at our
Riverdale mill to containerboard production and income of $2
million for the three months and nine months ended September 30,
2020 for other items.
|
|
|
(d)
|
Includes a charge of
$1 million for the nine months ended September 30, 2019 for
interest expense associated with foreign tax
audits.
|
|
|
(e)
|
Includes the
allocation of loss to noncontrolling interest of $2 million and $9
million for the three months and nine months ended September 30,
2019, respectively, associated with the impairment of the net
assets of our India Papers business.
|
|
|
(f)
|
Includes a charge of
$22 million for the three months and nine months ended September
30, 2019 for litigation reserves, a charge of $15 million for the
three months and nine months ended September 30, 2019 for an
environmental remediation reserve adjustment and a charge of $11
million for the three months and nine months ended September 30,
2019 related to an overhead cost reduction initiative.
|
|
|
(g)
|
Related to Industrial
Packaging, includes a charge of $32 million for the three months
and nine months ended September 30, 2019 related to an Italian
antitrust fine, charges of $9 million and $25 million for the three
months and nine months ended September 30, 2019, respectively, for
the removal of abandoned property at our mills, income of $7
million and a charge of $9 million for the three months and nine
months ended September 30, 2019, respectively, for costs associated
with a multi-employer pension plan exit liability, a gain of $9
million for the three months and nine months ended September 30,
2019 on the sale of a previously closed Oregon mill site and a gain
of $7 million for the nine months ended September 30, 2019 related
to the sale of a box plant in our EMEA Packaging
business.
|
|
|
|
Related to Global
Cellulose Fibers, includes charges of $3 million and $8 million for
the three months and nine months ended September 30, 2019,
respectively, for the removal of abandoned property at our mills
and a charge of $4 million for the three months and nine months
ended September 30, 2019 related to an overhead cost reduction
initiative.
|
|
|
|
Related to Printing
Papers, includes losses of $2 million and $97 million for the three
months and nine months ended September 30, 2019, respectively,
related to the foreign currency cumulative translation adjustment
resulting from the classification of the assets and liabilities of
our India Papers business as held for sale, losses of $6 million
and $63 million, partially offset by the allocation of loss to
noncontrolling interest of $2 million and $9 million for the three
months and nine months ended September 30, 2019, respectively, for
the impairment of the net assets of our India Papers business, a
charge of $6 million for the three months and nine months ended
September 30, 2019 related to an overhead cost reduction
initiative, charges of $1 million and $3 million for the three
months and nine months ended September 30, 2019, respectively, for
accelerated depreciation associated with the announced conversion
of a paper machine at our Riverdale mill to containerboard
production and charges of $1 million and $2 million for the three
months and nine months ended September 30, 2019, respectively, for
the removal of abandoned property at our mills.
|
|
|
(h)
|
Operating profits for
business 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 noncontrolling interest for these
subsidiaries is adjusted here to present consolidated earnings
before income taxes and equity earnings.
|
|
|
(i)
|
As set forth in the
chart above, business segment operating profit is defined as
earnings (loss) before income taxes and equity earnings, but
including the impact of noncontrolling interests, and excluding
interest expense, net, corporate expenses, net, corporate net
special items, business net special items and non-operating pension
expense. Business segment operating profit is a measure reported to
our management for purposes of making decisions about allocating
resources to our business segments and assessing the performance of
our business segments and is presented in our financial statement
footnotes in accordance with ASC 280.
|
INTERNATIONAL
PAPER COMPANY
Sales Volume by Product (a) Preliminary and
Unaudited
|
|
|
International
Paper Consolidated
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September 30,
|
|
Three Months
Ended
June 30,
|
|
Nine Months
Ended
September 30,
|
|
|
2020
|
|
2019
|
|
2020
|
|
2020
|
|
2019
|
|
Industrial Packaging
(In thousands of short tons)
|
|
|
|
|
|
|
|
|
|
|
Corrugated Packaging
(b)
|
2,705
|
|
2,651
|
|
2,571
|
|
7,900
|
|
7,810
|
|
Containerboard
|
760
|
|
736
|
|
783
|
|
2,370
|
|
2,140
|
|
Recycling
|
460
|
|
556
|
|
512
|
|
1,388
|
|
1,790
|
|
Saturated
Kraft
|
36
|
|
47
|
|
39
|
|
123
|
|
140
|
|
Gypsum /Release
Kraft
|
50
|
|
49
|
|
48
|
|
154
|
|
149
|
|
Bleached
Kraft
|
7
|
|
5
|
|
8
|
|
22
|
|
17
|
|
EMEA Packaging
(b)
|
374
|
|
375
|
|
375
|
|
1,190
|
|
1,124
|
|
Brazilian
Packaging (b)
|
98
|
|
96
|
|
83
|
|
271
|
|
272
|
|
European Coated
Paperboard
|
102
|
|
106
|
|
95
|
|
308
|
|
312
|
|
Industrial
Packaging
|
4,592
|
|
4,621
|
|
4,514
|
|
13,726
|
|
13,754
|
|
Global Cellulose
Fibers (In thousands of metric tons) (c)
|
886
|
|
878
|
|
965
|
|
2,752
|
|
2,606
|
|
Printing Papers (In
thousands of short tons)
|
|
|
|
|
|
|
|
|
|
|
U.S. Uncoated
Papers
|
336
|
|
451
|
|
247
|
|
998
|
|
1,340
|
|
European &
Russian Uncoated Papers
|
298
|
|
352
|
|
271
|
|
929
|
|
1,073
|
|
Brazilian Uncoated
Papers
|
208
|
|
301
|
|
150
|
|
598
|
|
828
|
|
Indian Uncoated
Papers
|
—
|
|
49
|
|
—
|
|
—
|
|
183
|
|
Printing
Papers
|
842
|
|
1,153
|
|
668
|
|
2,525
|
|
3,424
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Sales volumes include
third party and inter-segment sales and exclude sales of equity
investees.
|
|
|
(b)
|
Volumes for
corrugated box sales reflect consumed tons sold (CTS). Board sales
by these businesses reflect invoiced tons.
|
|
|
(c)
|
Includes North
American, European and Brazilian volumes and internal sales to
mills.
|
INTERNATIONAL
PAPER COMPANY
Consolidated Balance Sheet Preliminary and Unaudited
(In millions)
|
|
|
September 30,
2020
|
|
December 31,
2019
|
Assets
|
|
|
|
Current
Assets
|
|
|
|
Cash and Temporary
Investments
|
$
678
|
|
$
511
|
Accounts and Notes
Receivable, Net
|
3,034
|
|
3,280
|
Contract
Assets
|
388
|
|
393
|
Inventories
|
2,007
|
|
2,208
|
Current Financial
Assets of Variable Interest Entities
|
4,850
|
|
—
|
Assets Held for
Sale
|
114
|
|
—
|
Other
|
217
|
|
247
|
Total Current
Assets
|
11,288
|
|
6,639
|
Plants, Properties
and Equipment, Net
|
12,410
|
|
13,004
|
Forestlands
|
288
|
|
391
|
Investments
|
1,100
|
|
1,721
|
Long-Term Financial
Assets of Variable Interest Entities
|
2,252
|
|
7,088
|
Goodwill
|
3,304
|
|
3,347
|
Right of Use
Assets
|
422
|
|
434
|
Deferred Charges and
Other Assets
|
776
|
|
847
|
Total
Assets
|
$
31,840
|
|
$
33,471
|
Liabilities and
Equity
|
|
|
|
Current
Liabilities
|
|
|
|
Notes Payable and
Current Maturities of Long-Term Debt
|
$
179
|
|
$
168
|
Current Nonrecourse
Financial Liabilities of Variable Interest Entities
|
4,220
|
|
4,220
|
Accounts Payable and
Other Current Liabilities
|
3,701
|
|
4,258
|
Liabilities Held for
Sale
|
376
|
|
—
|
Total Current
Liabilities
|
8,476
|
|
8,646
|
Long-Term
Debt
|
8,525
|
|
9,597
|
Long-Term Nonrecourse
Financial Liabilities of Variable Interest Entities
|
2,091
|
|
2,085
|
Deferred Income
Taxes
|
2,639
|
|
2,633
|
Pension Benefit
Obligation
|
1,421
|
|
1,578
|
Postretirement and
Postemployment Benefit Obligation
|
246
|
|
270
|
Long-Term Lease
Obligations
|
290
|
|
304
|
Other
Liabilities
|
1,056
|
|
640
|
Equity
|
|
|
|
Invested Capital, Net
of Treasury Stock
|
(1,029)
|
|
(695)
|
Retained
Earnings
|
8,122
|
|
8,408
|
Total International
Paper Shareholders' Equity
|
7,093
|
|
7,713
|
Noncontrolling
interests
|
3
|
|
5
|
Total
Equity
|
7,096
|
|
7,718
|
Total Liabilities
and Equity
|
$
31,840
|
|
$
33,471
|
INTERNATIONAL
PAPER COMPANY Consolidated Statement of Cash
Flows Preliminary and Unaudited
(In millions)
|
|
|
Nine Months Ended
September 30,
|
|
2020
|
|
2019
|
Operating
Activities
|
|
|
|
Net earnings
(loss)
|
$
329
|
|
$
1,054
|
Depreciation,
amortization and cost of timber harvested
|
955
|
|
963
|
Deferred income tax
expense (benefit), net
|
(5)
|
|
68
|
Restructuring and
other charges, net
|
131
|
|
21
|
Net (gains) losses on
sales and impairments of businesses
|
347
|
|
153
|
Net (gains) losses on
sales of equity method investments
|
(35)
|
|
—
|
Antitrust
fines
|
—
|
|
32
|
Equity method
dividends received
|
158
|
|
260
|
Equity (earnings)
losses, net
|
(13)
|
|
(221)
|
Periodic pension
expense, net
|
24
|
|
70
|
Other, net
|
212
|
|
106
|
Changes in current
assets and liabilities
|
|
|
|
Accounts and notes
receivable
|
96
|
|
168
|
Contract
assets
|
2
|
|
6
|
Inventories
|
74
|
|
(9)
|
Accounts payable and
accrued liabilities
|
—
|
|
(11)
|
Interest
payable
|
(26)
|
|
(31)
|
Other
|
25
|
|
53
|
Cash Provided By
(Used For) Operating Activities
|
2,274
|
|
2,682
|
Investment
Activities
|
|
|
|
Invested in capital
projects, net of insurance recoveries
|
(657)
|
|
(913)
|
Acquisitions, net of
cash acquired
|
(64)
|
|
(99)
|
Proceeds from sales
of equity method investments
|
500
|
|
—
|
Proceeds from sales
of businesses, net of cash divested
|
—
|
|
17
|
Proceeds from sale of
fixed assets
|
3
|
|
15
|
Other
|
18
|
|
(14)
|
Cash Provided By
(Used For) Investment Activities
|
(200)
|
|
(994)
|
Financing
Activities
|
|
|
|
Repurchases of common
stock and payments of restricted stock tax withholding
|
(42)
|
|
(535)
|
Issuance of
debt
|
692
|
|
381
|
Reduction of
debt
|
(1,795)
|
|
(772)
|
Change in book
overdrafts
|
16
|
|
(29)
|
Dividends
paid
|
(605)
|
|
(595)
|
Debt tender premiums
paid
|
(124)
|
|
—
|
Other
|
(1)
|
|
3
|
Cash Provided By
(Used for) Financing Activities
|
(1,859)
|
|
(1,547)
|
Cash Included in
Assets Held for Sale
|
(11)
|
|
(19)
|
Effect of Exchange
Rate Changes on Cash
|
(37)
|
|
(14)
|
Change in Cash and
Temporary Investments
|
167
|
|
108
|
Cash and Temporary
Investments
|
|
|
|
Beginning of the
period
|
511
|
|
589
|
End of the
period
|
$
678
|
|
$
697
|
INTERNATIONAL
PAPER COMPANY Reconciliation of Cash Provided by
Operations to Free Cash Flow Preliminary and Unaudited
(In millions)
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Cash Provided By
(Used For) Operating Activities
|
$
735
|
|
$
882
|
|
$
2,274
|
|
$
2,682
|
Adjustments:
|
|
|
|
|
|
|
|
Cash invested in
capital projects, net of insurance recoveries
|
(119)
|
|
(285)
|
|
(657)
|
|
(913)
|
Free Cash
Flow
|
$
616
|
|
$
597
|
|
$
1,617
|
|
$
1,769
|
|
|
|
|
|
|
|
|
Free cash flow is a
non-GAAP measure and the most directly comparable GAAP measure is
cash provided by operations. Management believes that free cash
flow is useful to investors as a liquidity measure because it
measures the amount of cash generated that is available, after
reinvesting in the business, to maintain a strong balance sheet,
pay dividends, repurchase stock, service debt and make investments
for future growth. It should not be inferred that the entire free
cash flow amount is available for discretionary expenditures. By
adjusting for certain items that are not indicative of the
Company's ongoing performance, free cash flow also enables
investors to perform meaningful comparisons between past and
present periods.
|
|
The non-GAAP
financial measures presented in this release have limitations as
analytical tools and should not be considered in isolation or as a
substitute for an analysis of our results calculated in accordance
with GAAP. In addition, because not all companies use identical
calculations, the Company's presentation of non-GAAP measures in
this release may not be comparable to similarly titled measures
disclosed by other companies, including companies in the same
industry as International Paper.
|
|
Management believes
certain non-U.S. GAAP financial measures, when used in conjunction
with information presented in accordance with U.S. GAAP, can
facilitate a better understanding of the impact of various factors
and trends on the Company's financial condition and results of
operations. Management also uses these non-U.S. GAAP
financial measures in making financial, operating and planning
decisions and in evaluating the Company's performance.
|
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SOURCE International Paper