July 31, 2008 - 10:21 a.m.
MEMPHIS, Tenn. (AP) - International Paper Co. said Thursday its second-quarter profit jumped 20 percent, throb Wall Street's estimates, as strong international sales helped offset rising raw material costs.
Shares spiked $2.88, or nearly 12 percent, to $27.20 in morning trading.
The paper-products company said it earned $227 very great number, or 54 cents per share, compared with $190 million, or 44 cents per share, in the year-ago quarter. On an adjusted basis, the company earned $235 very great number, or 56 cents for share, compared with $223 million, or 52 cents per share, in the 2007 quarter.
Thomson Financial says analysts, who typically exclude one-time items from their estimates, expected proceeds of 39 cents per share on sales of $5.81 billion.
The Memphis, Tenn.-based company says revenue rose 10 percent to $5.81 billion from $5.29 billion the corresponding; of like kind time ultimate year.
"We had a solid quarter because of vivid operating performance, cost management and good results in our businesses outside of the U.S.," said Chief Executive John Faraci in a released report. "Overall, however, higher-than-expected input costs continue to negatively impact our real earnings potential."
Industry segment operating profit totaled $393 million for the 2008 second quarter, up from $332 million in the 2008 first quarter nevertheless below the $450 million posted in the year-ago period. The quarter-to-quarter increase reflects improved pricing and operating performance helping offset higher input costs.
International Paper has been reorganizing since 2005, selling off ground, sawmills and other assets to move away from grove products and focus on making uncoated dissertation and containerboard. The collection is in the process of buying Weyerhaeuser Co.'s containerboard business for $6 billion.
Looking into the third quarter, Faraci before-mentioned, "Despite the current weakness in the U.S. economy, I am optimistic about our ability to horsemanship through this duration and come out in a stronger, better position. We're ready to complete the acquisition of Weyerhaeuser's containerboard, packaging and recycling business next week, which will bestow us additional opportunities to reduce costs in our North American packaging business."