News

International Paper’s (IP) food-service packaging business has enjoyed its best quarter in eight years.

Overall operating profits in IP’s consumer packaging business rose 30% to £30.5m (US$61m) in the three months to 31 March, compared with the same period last year. Sales were up 22% to £375m.

Profits in the group’s industrial packaging business soared by 262% to £52.5m, while sales rose 5% to £617.5m.

However, the division’s performance was weaker than in the fourth quarter of 2006.

During Q1 2007, IP sold its beverage packaging division to Carter Holt Harvey, part of Graeme Hart’s Rank Group in New Zealand, which later added SIG to become one of the world’s largest beverage packaging producers.

IP chief executive John Faraci said: “We’ve made a good start to the year and our global markets are healthy. We expect somewhat higher earnings from continuing operations in the second quarter.”