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IP 3Q tops estimates
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October 18, 2000: 1:02 p.m. ET
Paper maker to cut 2,500 jobs or 2 percent of work force, and close 3 mills
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NEW YORK (CNNfn) - International Paper reported third-quarter earnings Wednesday that increased 15 percent, but also said it would cut 2,500 jobs or approximately 2 percent of its work force to streamline production.
The world's largest maker of paper and wood products reported earnings of $260 million or 53 cents, excluding one-time items, a penny above Wall Street forecasts. A year earlier it earned $193 million, or 46 cents a share.
Sales rose to $7.8 billion from $6.3 billion.
 Three mills will be closed and one scaled back as part of the capacity reduction, the company said. The shutdowns will result in reductions of about 820,000 tons, or 18 percent, of International Paper's U.S. uncoated papers, 120,000 tons (7 percent) of its North American market pulp, 230,000 tons (5 percent) of its U.S. containerboard, and 50,000 tons of unbleached Kraft paper capacity.
"We cannot continue to operate "business as usual' if we are to win in the tough, global business environment in which we operate today," Chairman and CEO John Dillon said, referring to the cutbacks.
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"We will do everything possible to help reduce the adverse impact on our employees and communities. On the positive side, we feel strongly that by taking this action, both our shareowners and employees will benefit from a stronger, more efficient, more focused IP," he added.
The company made a similar move in January when it announced it would pare 2,000 jobs despite topping fourth-quarter targets.
About 2,500 employees at the mills -- in Mobile and Courtland, Ala., Lock Haven, Pa., and Camden, Ark. -- and related forestry operations will either be laid-off or transferred.
The company said it would start closing the plants in the fourth quarter, and charges associated with the shutdowns will be reported in fourth-quarter earnings.
After the announcement, IP (IP: Research, Estimates) shares were up $1.19 to $28 in afternoon trading Wednesday 
-- from staff and wire reports
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International Paper
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