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Int'l Paper beats estimates
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January 12, 1999: 2:01 p.m. ET
Company reports better-than-expected 4Q despite Asian crisis
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NEW YORK (CNNfn) - International Paper posted a decline in fourth-quarter profits Tuesday, aided by the Asian crisis and lower paper prices. But the paper manufacturer came in ahead of analysts' expectations, outdoing Wall Street estimates by a dime.
The Purchase, N.Y.-based company reported a profit of $31 million, or 10 cents per share, including a $35 million after-tax charge related to the impairment of oil and gas reserves. For the same period last year, International Paper earned $132 million, or 44 cents per share.
Before special items, earnings dropped 60 percent to $66 million, or 21 cents per share, but came in above estimates of 11 cents per share, according to analysts surveyed by First Call.
Fourth-quarter sales totaled $5 billion, compared with $5.1 billion one year ago.
For the year, the company earned $213 million, or 70 cents per share, compared to last year's loss of $151 million, or 50 cents per share. Sales reached $19.5 billion, below $20.1 billion the preceding year.
The company said the Asian financial crisis had an adverse impact on its business in 1998, forcing prices lower, but added it had reduced costs and improved efficiencies in weaker markets.
Although challenges related to the global economic situation remain, IP said it is "optimistic" about the latter part of the year and consequently has raised prices on linerboard and printing papers.
Additionally, the company said it expects its merger with Union Camp (UCC) to be completed by the end of the first quarter of 1999.
Shares of International Paper (IP) fell 3/8 to 45-5/8 Monday afternoon. 
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International Paper
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