IP to benefit in 2012 from investments such as JV with Ilim in Russia, 75% stake in India's Andhra Pradesh and acquisition of Temple-Inland, which should be completed in coming months, says CEO
Bdebbie Garcia
LOS ANGELES
,
October 27, 2011
(Forestweb)
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International Paper Co. will have improved profits next year because of the investments it’s made, giving it “more earnings runway ahead,” said CEO John Faraci on Oct. 27, reported Bloomberg News on the same day.
Despite “challenging” economic times, the world’s largest paper company has “lots of things that will enable us to improve,” Faraci said, in an interview from the company’s headquarters in Memphis, Tennessee.
In 2012, International Paper is expected to earn US$3.02 per share, based on an average of 12 analysts’ estimates, compared with an estimated $2.98/share in 2011, according to figures collected by Bloomberg.
Among its investments this year that will help the company is the acquisition of Austin, Texas-based Temple-Inland Inc. Faraci expects the deal to be completed in the coming months, Bloomberg reported.
International Paper also bought a 75% stake in Andhra Pradesh Paper Mills Ltd. in India, for $420 million, giving it a footing there for further expansion. In Russia, the company aims to grow from its joint venture with Ilim Group, Faraci said.
The company reported today that its net income increased to $518 million, or $1.19/share, from $397 million, or $0.91/share. Per-share profit after acquisition costs and a writedown of its Shorewood packaging unit was a record $0.92/share, reported Bloomberg.
The primary source of this article is Bloomberg News, New York, New York, on Oct. 27, 2011.
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