International Paper 2Q net income falls 32 percent as the company restructures

Costs hit International Paper during 2Q

MEMPHIS, Tenn. — International Paper Co. said Wednesday that second-quarter profit fell 32 percent as restructuring and other charges erased a 5.5 percent revenue gain.

The second quarter included $144 million in restructuring and other charges. And last year during the same period, the company posted a pre-tax gain of $482 million, among other items.

International Paper predicted a stronger third quarter Wednesday.

“Each of our businesses posted strong results in the second quarter, leading to the significant increase in earnings per share and solid free cash flow,” said John Faraci, chairman and chief executive. “Operating rates are strong, inventories are low, and input costs are moderating. All of these factors position us well for a stronger third quarter.”

During the second quarter, the paper and packaging company earned $93 million, or 21 cents per share, compared with $136 million, or 32 cents per share.

Excluding one-time charges, earnings would have been 42 cents per share, compared with 20 cents per share last year.

Revenue rose to $6.12 billion from $5.8 billion.

The company posted operating profits, excluding one-time items, in its industrial packaging, consumer packaging and printing paper businesses.

International Paper edged out the per-share forecast of analysts polled by Thomson Reuters by a penny, but its revenue fell just shy.