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Int'l Paper profit sinks
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July 17, 2001: 9:35 a.m. ET
Paper maker's 2Q earnings plunge but are more than double forecasts
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NEW YORK (CNNfn) - Profits tumbled at International Paper Co. in the second quarter but the paper maker's results still managed to more than double Wall Street forecasts.
The Stamford, Conn.-based paper products company said it earned $64 million, or 13 cents a diluted share, for the quarter excluding one-time items. Analysts surveyed by earnings tracker First Call had forecast earnings of 6 cents a share, down from 75 cents a year earlier.
Sales dipped to $6.7 billion from $6.8 billion, with the company citing a weak pulp and paper market plus the impact of a stronger dollar, which it said reduced its competitiveness overseas.
The firm's forest products division had improved sales and operating income, but all other segments had lower operating income during the period. The biggest decline was in the printing papers division, where operating income fell 42 percent to $119 million even as sales gained 35 percent to $1.95 billion.
"The external environment continues to be very difficult," CEO John Dillon said. "We have continued to reduce our capacity to match demand from our customers, improved our operations and began to realign staff resources to better our financial results."
The company announced 4,000 job cuts during the quarter, and took a $300 million after-tax charge to cover severance and other costs. Including that and other special items, the company reported a net loss of $313 million, or 65 cents a share, compared with net income of $270 million, or 64 cents a share, a year earlier.
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Shares of International Paper (IP: Research, Estimates) lost 42 cents to $38.23 Monday. 
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International Paper
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