News

International Paper saw sharp increases in raw material and energy costs eat into its profits this week as its first-quarter profit fell by 69% to $133m (£67m).

The Memphis-based packaging, paper and forest products group's revenue to 31 March rose by 8.6% to $5.7bn, with sales growth in industrial and consumer packaging and printing papers.

In industrial packaging, the European box market was "seasonally slower" in the first quarter, although daily shipments in the US were up quarter-over-quarter.

US coated paperboard revenues remained strong in the consumer packaging division, especially for cupstock, and the foodservice business performed well with "steady volume, solid operations and solid pricing".

The firm's US sales volume in printing papers fell slightly, while Eastern Europe and Russia continued to show growth.

IP chairman and chief executive John Faraci said the firm was prepared to "work through the weakness of the US economy" in the second quarter.

"Our business outside of North America continues to demonstrate healthy growth and solid pricing," he said.