SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15 (d) of the
Securities Exchange Act of 1934
January 10, 1995
Date of Report (Date of Earliest Event Reported)
INTERNATIONAL PAPER COMPANY
(Exact name of Registrant as specified in its charter)
New York 1-3157 13-0872805
(State of (Commission (IRS Employer
Incorporation) File) Identification
Number)
Two Manhattanville Road, Purchase, NY 10577
(Address of Principal executive offices)
914-397-1500
(Telephone No.)
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
ITEM 1. CHANGES IN CONTROL OF REGISTRANT
N/A
ITEM 2. ACQUISITION OR DISPOSITION OF ASSETS
N/A
ITEM 3. BANKRUPTCY OR RECEIVERSHIP
N/A
ITEM 4. CHANGES IN REGISTRANT'S CERTIFYING ACCOUNTANT
N/A
ITEM 5. OTHER EVENTS
A press release was issued on January 10, 1995 regarding
1994 fourth-quarter unaudited net earnings of $154 million
or $1.23 per common share verses 1993 fourth-quarter net
earnings of $100 million or $.81 a common share.
ITEM 6. RESIGNATIONS OF REGISTRANT'S DIRECTORS
N/A
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(a) Financial Statements:
N/A
(b) Pro Forma Financial Information:
N/A
2
(c) Exhibits:
(99) Press Release, dated January 10, 1995
ITEM 8. CHANGES IN FISCAL YEAR
N/A
3
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
INTERNATIONAL PAPER COMPANY
(Registrant)
Date: January 13, 1995 /s/ SYVERT E. NERHEIM
Purchase, NY Syvert E. Nerheim
Assistant Secretary
4
EXHIBIT INDEX
(99) Press Release, dated January 10, 1995
EXHIBIT 99
INTERNATIONAL PAPER
2 MANHATTANVILLE ROAD
PURCHASE, NY 10577
News Release
Media Contacts: Analyst Contacts:
Carl Gagliardi Carol S. Tutundgy
(914) 397-1666 (914) 397-1632
Mike Goodwin Linda Decker
(914) 397-1652 (914) 397-1623
INTERNATIONAL PAPER REPORTS 1994 FOURTH
QUARTER EARNINGS UP 52 PERCENT OVER 1993 FOURTH QUARTER
For Immediate Release
Tuesday, January 10, 1995
PURCHASE, N.Y. -- International Paper today reported preliminary fourth-quarter
1994 net earnings of $154 million or $1.23 per share, a 52 percent increase over
fourth-quarter 1993 net earnings of $100 million or $.81 per share and a 41
percent increase over the third-quarter 1994 net earnings of $109 million or
$.87 per share.
Fourth-quarter 1994 sales were $4.1 billion, a 21 percent increase over
fourth-quarter 1993 sales of $3.4 billion and 8 percent more than third-quarter
1994 sales of $3.8 billion.
1994 reported net earnings were $357 million or $2.86 per share after a charge
of $65 million or $.52 per share for a change in accounting for start-up costs.
These net earnings were 22 percent higher than 1993 reported net earnings of
$289 million or $2.34 per share after a $25 million or $.20 per share charge to
revalue deferred taxes.
Before the effect of accounting changes and other unusual items, full-year 1994
earnings were $422 million or $3.38 per share, a 33 percent increase over 1993
earnings of $314 million or $2.54 per share. Full-year 1994 sales were $15
billion, a 9 percent increase over 1993 sales of $13.7 billion.
"We expect to see sharply higher profits in 1995 as the supply of all of our
paper and packaging products remains tight against very high demand," said John
A. Georges, chairman and chief executive officer. "Our U.S. operations built up
very strong momentum in the fourth quarter, and that should continue well into
1995. Our overseas business is once again solidly profitable and is expected to
improve still further. Overall, the outlook is extremely positive.
"We are well positioned to take full advantage of the higher demand and price
levels as the benefits of our cost-reduction and organizational redesign
programs coincide with the rapidly improving economy."
The packaging and printing papers businesses led the company's solid performance
in the fourth quarter. The industrial packaging business benefited from both
strong demand and higher prices for containerboard and corrugated cartons. In
printing papers, price increases in both the United States and Europe,
propelled by a strengthening pulp market, led to a resurgence in earnings.
Specialty products results were mixed, but earnings overall improved over both
the previous quarter and year-earlier levels. Forest products continued to
perform well, although earnings were below last year's record fourth-quarter
forest products profits because of decreased harvest levels.
As a result of a company-wide benchmarking program, the company's management
decided to change its method of accounting for machine start-up costs. These
costs will now be expensed as they are incurred, rather than capitalized and
amortized over future periods. The company's management felt the accounting
change represents a more conservative approach to reporting start-up expenses.
International Paper, headquartered in Purchase, N.Y., is a worldwide producer of
printing and writing papers, paperboard and packaging products and wood
products. The company also operates specialty products businesses and
distributes paper and wood products. International Paper has manufacturing
operations in 26 countries and exports its products to more than 130 nations.
# # #
Summary of Consolidated Earnings
Preliminary and Unaudited
(In millions except for net sales and per share data)
Three Months Ended Twelve Months Ended
December 31, December 31,
------------------ -------------------
1994 1993 1994(a) 1993
------ ------ ------ ------
Net Sales (In Billions) $ 4.1 $ 3.4 $ 15.0 $ 13.7
------ ------ ------ ------
Earnings Before Interest,
Income Taxes and Cumulative
Effect of Accounting
Change 329 237 1,013 810
Interest expense, net 94 79 349 310
------ ------ ------ ------
Earnings Before Income Taxes
and Cumulative Effect of
Accounting Change 235 158 664 500
Provision for income
taxes 81 58 232 211
------ ------ ------ ------
Earnings Before Cumulative
Effect of Accounting Change 154 100 432(b) 289(c)
Cumulative effect of
change in accounting for
start up costs (75)(a)
------ ------ ------ ------
Net Earnings $ 154 $ 100 $ 357 289(c)
====== ====== ====== ======
Earnings Per Common Share
Earnings Before Cumulative
Effect of Accounting
Change $ 1.23 $ 0.81 $ 3.46(b) 2.34(c)
Cumulative effect of
change in accounting for
start up costs (0.60)(a)
------ ------ ------ ------
Earnings Per Common Share $ 1.23 $ 0.81 $ 2.86 2.34(c)
====== ====== ====== ======
Average Shares Outstanding 125.6 123.6 124.9 123.2
====== ====== ====== ======
(a) Effective January 1, 1994 a pre-tax charge of $125 million ($75 million
after taxes or $0.60 per share) was recorded as the cumulative effect of the
change in accounting for start up costs. The change in accounting for
start up costs also resulted in additional operating income during 1994 of
$17 million ($10 million after taxes or $0.08 per share) for a net
after-tax impact of $65 million or $0.52 per share. Quarterly earnings
were restated to reflect the cumulative effect charge and the additional
current-year income.
(b) $422 million or $3.38 per share before $17 million ($10 million after taxes
or $.08 per share) of additional income for the current-year effect of the
change in accounting for start up costs which impacted the first three
quarters of 1994 as follows: first quarter, $4 million or $0.03 per share;
second quarter, $4 million or $0.03 per share; and third quarter, $2
million or $0.02 per share. There was no impact on the fourth quarter. Net
earnings and earnings per share as restated for both the cumulative effect
charge and current-year impact of the change in accounting for start up
costs are as follows: first quarter, $1 million or $0.01 per share; second
quarter, $91 million or $0.73 per share; and third quarter, $111 million
or $0.89 per share.
(c) $314 million ($2.54 per share) for the year before a $25 million ($.20 per
share) charge to revalue deferred tax balances.
INTERNATIONAL PAPER
SALES BY BUSINESS SEGMENT
Preliminary and Unaudited
(In Millions)
Three Months Twelve Months
Ended Ended
December 31 December 31
---------------- -----------------
1994 1993 1994 1993
------ ------ ------- -------
Printing Papers $1,275 $ 920 $ 4,400 $ 3,905
Packaging 920 775 3,375 3,095
Distribution 960 810 3,470 3,140
Specialty Products 675 615 2,590 2,460
Forest Products 415 445 1,715 1,700
Less: Intersegment Sales (118) (153) (584) (615)
------ ------ ------- -------
$4,127 $3,412 $14,966 $13,685
====== ====== ======= =======
