News

International Paper (IP) has gone from a loss in 2008 to a profitable 2009 on the back of cost reduction and US government credits for using alternative fuels.

IP recorded a pre-tax profit of $1.2bn for the financial year, compared to a $1.2bn loss in 2008, despite falling sales.

Chief executive John Faraci hailed the "solid results" despite economic uncertainties and rising input costs.

"Our focus on reducing overhead cost, matching our supply with customer demand and realising industrial packaging synergies gave us the ability to generate cashflow and pay down our debt while positioning ourselves for 2010, " he said.

The world's biggest paper-based product firm recorded a 9% drop in sales in the three months to 31 December of $6bn (£3.8bn). But the firm recorded a pre-tax loss of $428m compared to a $1.9bn loss in 2008 when it was hit with charges for restructuring and closing operations.

Consumer packaging recorded an operating profit of $49m while the industrial segment's profit dropped 60% to $84m due to input costs, maintenance outages and lower margins from export sales.

IP 2009 RESULTS

Sales $23.3bn (24.8bn in 2009)
Pre-tax earnings $1.2bn (£1.2bn loss)
Net profit $663m ($1.3bn loss)

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