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 31, 1996
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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
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(Address of Principal executive offices)
914-397-1500
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(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
The Registrant announced preliminary and unaudited 1995 full year
earnings of $1.2 billion or $4.50 a share versus 1994 full year earnings
of $357 million or $1.43 a share. The 1995 fourth-quarter preliminary
and unaudited earnings, after a charge before taxes for expenses, were
$263 million or $1.01 per share versus 1994 fourth-quarter preliminary
and unaudited earnings of $154 million or $.61 a 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 9, 1996, announcing preliminary and
unaudited earnings for the 1995 fourth-quarter and full year.
ITEM 8. CHANGES IN FISCAL YEAR
N/A
Signatures
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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 31, 1996 /s/ SYVERT E. NERHEIM
Purchase, NY ----------------------------
Syvert E. Nerheim
Assistant Secretary
3
Exhibit 99
INTERNATIONAL [LOGO] PAPER
2 MANHATTANVILLE ROAD
PURCHASE, NY 10577-2196
News Release
Media Contacts: Analyst Contacts
Carl Gagliardi Carol Tutundgy
(914) 397-1666 (914) 397-1632
Molly Sullivan Maryanne Rupy
(914) 397-1652 (914) 397-1626
Brian Turcotte
(914) 397-1623
1995 RECORD EARNINGS YEAR FOR INTERNATIONAL PAPER--
FOURTH-QUARTER PROFITS UP 66 PERCENT OVER 1994 FOURTH QUARTER
January 9, 1996
PURCHASE, N.Y. -- International Paper reported 1995 net earnings of
$1.2 billion or $4.50 a share, more than three times the 1994 net earnings of
$357 miilion or $1.43 a share. Sales were $19.8 billion, a 32 percent
increase over 1994 sales of $15 billion.
"This has been the most profitable year in Interational Paper's
history," said John A. Georges, chairman and chief executive officer of
International Paper. "The company's performance reflects record demand for
paper and packaging products throughout most of 1995, the increasing breadth
of our product and customer bases and the benefits of our productivity and
cost-reduction programs. These improvements, together with the expanded
position in Carter Holt Harvey, contributed to the record results."
International Paper's 1995 fourth-quarter net earnings were $263
million or $1.01 per share. As previously announced, the fourth quarter
includes expenses before taxes of about $70 million, or $.17 a share, mostly
relating to severance costs and asset write-offs. Severance costs,
which account for about two-thirds of the total, reflect a reduction in
employment by some 1,300 people at several facilities and businesses in the
United States and Europe. Quarterly earnings without the expenses would have
been $1.18 per share.
Fourth-quarter 1995 earnings after these expenses were up 66 percent
over 1994 fourth-quarter earnings of $154 million, or $.61 share.
Fourth-quarter sales were $5.1 billion, a 24 percent increase over
fourth-quarter 1994 sales of $4.1 billion.
"Our improved productivity and efficiency are especially important to
the company's profitability as paper and packaging markets weakened during
the fourth quarter," Georges said. "We expect this market weakness to
continue into the early part of 1996. However, we anticipate that demand
for our products will resume their growth as the economy improves and our
customers complete the inventory adjustments we believe are responsible
for the weaker demand.
"Our acquisition of Federal Paper Board is expected to conclude
during the first quarter of 1996. We believe this merger represents solid
value for our company and our shareholders.
"We also have significant worldwide expansion programs underway that
will benefit earnings beginning later this year. These include added
capacity for printing papers, containerboard and oriented strand board in
the United States, packaging board in Poland, non-wovens in Mexico and
liquid packaging in France."
In 1995, the largest sales and earnings gains were in the company's
printing papers segment, which benefited from high demand and a series of price
increases early in the year. Packaging earnings also improved significantly
for similar reasons. ResourceNet's results were also strong, reflecting
improved paper markets, as well as expansion into new markets.
Several of the company's businesses, including wood products and
some specialty businesses, were lower for the year.
International Paper, an official sponsor of the 1996 Olympic games, is
a worldwide producer of printing papers, packaging and forest products. The
company also operates specialty businesses and a broadly based paper
distribution network. International Paper has manufacturing operations
in 28 countries and exports its products to more than 130 nations.
# # #
International Paper Company
Summary of Consolidated Earnings
Preliminary and Unaudited
(In millions except for net sales and per share amounts)
(Per share amounts adjusted for two-for-one stock split)
Three Months Ended Twelve Months Ended
December 31 December 31
1995 1994 1995 1994
-------- -------- -------- --------
Net Sales (In billions) $ 5.1 $ 4.1 $ 19.8 $ 15.0
-------- -------- -------- --------
Earnings Before Interest,
Income Taxes, Minority
Interest and Cumulative
Effect of Accounting
Change 599 338 2,521 1,064
Interest expense, net 122 94 493 349
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Earnings Before Income
Taxes, Minority Interest
and Cumulative Effect of
Accounting Change 477 244 2,028 715
Povision for income taxes 168 82 719 236
Minority interest expense,
net of taxes 46 8 156 47
-------- -------- -------- --------
Earnings Before Cumulative
Effect of Accounting
Change 263 154 1,153 432 (b)
Cumulative effect of change
in accounting for start
up costs (75)(a)
-------- -------- -------- --------
Net Earnings $ 263 $ 154 $ 1,153 $ 357
======== ======== ======== ========
Earnings Per Common Share
Earnings Before Cumulative
Effect of Accounting
Change $ 1.01 $ 0.61 $ 4.50 $ 1.73 (b)
Cumulative effect of change
in accounting for start up
costs (0.30)(a)
-------- -------- -------- --------
Earnings Per Common Share $ 1.01 $ 0.61 $ 4.50 $ 1.43
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Average Shares Outstanding 260.8 251.3 256.5 249.7
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(a) Effective January 1, 1994 a pre-tax charge of $125 million ($75 million
after taxes or $0.30 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 earnings for the full
year 1994 of $17 million ($10 million after taxes or $0.04 per share) for
a net after-tax impact of $65 million or $0.26 per share. Quarterly
earnings were restated to reflect the cumulative effect charge and the
additional current-year earnings.
(b) $422 million or $1.69 per share before $17 million ($10 million after taxes
or $0.04 per share) of additional earnings for the current-year effect of
the change in accounting for start up costs.
INTERNATIONAL PAPER
SALES BY BUSINESS SEGMENT
Preliminary and Unaudited
(In Millions)
Three Months Ended Twelve Months Ended
December 31 December 31
1995 1994 1995 1994
-------- -------- -------- --------
Printing Papers $ 1,505 $ 1,275 $ 6,175 $ 4,400
Packaging 1,130 920 4,420 3,375
Distribution 1,250 960 5,025 3,470
Specialty Products 900 675 3,300 2,590
Forest Products 630 415 2,100 1,715
Less: Intersegment Sales (339) (118) (1,223) (584)
-------- -------- -------- --------
$ 5,076 $ 4,127 $ 19,797 $ 14,966
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