International Paper thanks packaging arm for Q2 bonanza

The improvement was driven by higher containerboard and US box shipments, fewer maintenance shutdowns and better manufacturing efficiency.

Profits in its consumer packaging division dropped 20% to £24m, which IP blamed on maintenance closures in coated paperboard and higher costs across the segment. Volume, pricing and mill operations were otherwise "solid" in the sector and the food-service business posted "record" profits for the quarter. The division's sales rose 5% to £389m.

Discontinued operations for the second quarter incurred pre-tax charges of £5.4m. This related to the first-quarter sale of IP's beverage packaging business to Carter Holt Harvey, part of Graeme Hart's New Zealand-based Rank Group, and of other businesses in the wood products sector.

Overall operating profits increased by 8% quarter-on-quarter to £280m. Sales were "essentially flat" at £2.6bn.

IP chief executive John Faraci said he expected "somewhat stronger earnings" from continued operations in the third quarter and "continued cost reduction and pricing improvement" in some markets, including pulp and packaging.

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