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
April 9, 1997
-------------------------------------------------------
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.)
<PAGE>
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 Company announced 1997 first-quarter preliminary and unaudited
earnings of $34 million or $.11 a common share versus 1996
first-quarter earnings of $124 million or $.46 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
(c) Exhibits
Press release dated April 8, 1997 announcing preliminary and
unaudited earnings for the 1997 first quarter.
<PAGE>
ITEM 8. CHANGES IN FISCAL YEAR
N/A
Signature
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: April 9, 1997 /S/ CAROL M. BERARDI
Purchase, NY -----------------------------
Carol M. Berardi
Assistant Secretary
INTERNATIONAL PAPER [LOGO]
News Release 2 MANHATTANVILLE ROAD
PURCHASE, NY 10577
Media Contacts: Analyst Contacts:
Phillip Giaramita Carol Tutundgy
(914) 397-1665 (914) 397-1632
Molly Sullivan Maryanne Rupy
(914) 397-1652 (914) 397-1626
Brian Turcotte
(914) 397-1623
INTERNATIONAL PAPER REPORTS FIRST-QUARTER EARNINGS
OF $34 MILLION OR $.11 A SHARE
April 8, 1997
PURCHASE, N.Y. - International Paper reported first-quarter 1997 net earnings of
$34 million, or $.11 a share, a decrease from last year's first-quarter earnings
before special items of $124 million, or $.46 a share, and fourth-quarter 1996
earnings before special items of $100 million, or $.33 a share. Last year's
first-quarter and fourth-quarter results including special items were $98
million, or $.36 a share, and a loss of $5 million, or $.02 a share,
respectively.
First-quarter 1997 net sales were $4.9 billion, compared to first-quarter
1996 sales of $4.8 billion. Fourth-quarter 1996 sales were $5.1 billion.
"Although demand was generally strong, industry inventories remained high
throughout the quarter. As a result, prices continued to decline, adversely
affecting our earnings," said John T. Dillon, chairman and chief executive
officer. "Given the industry's additional capacity, we've taken downtime to
balance our production with demand, principally in uncoated papers, pulp and
containerboard."
"Moreover, we've brought our 1997 capital spending target down to $1.2
billion, below our expected level of depreciation, and we're not planning to add
new capacity in our U.S. pulp and paper businesses." Dillon said.
<PAGE>
In 1997's first quarter, earnings for the printing papers segment decreased
from the fourth quarter due to price declines for uncoated papers and pulp.
However, demand for uncoated grades, particularly copy and printing papers,
strengthened in recent weeks in the Unites States, and April and May price
increases of $100 a ton were announced for uncoated grades.
Earnings from the company's packaging business were down from the previous
quarter, mainly because of price declines for containerboard and boxes. Prices
and demand for bleached board remained stable throughout the quarter.
Specialty products' earnings were slightly higher than last quarter and
were significantly ahead of a year ago. Building products were strong; and
chemical profits improved and were further strengthened as a result of last
year's acquisition of Forchem in Finland.
Earnings from the forest products business were down from the previous
quarter, mainly due to depressed markets for siding and a lower contribution
from New Zealand-based Carter Holt Harvey. However, demand for timber was solid,
and prices tended upward. Housing starts, a reflection of the construction and
repair markets, were strong throughout the quarter.
"We are finally at the bottom of an extremely difficult business cycle,"
Dillon said, "I am optimistic that the second quarter will be stronger than the
first. Current conditions, however, continue to demonstrate the need to focus on
those business factors that we can control. At the top of our list are plans
developed by each of our businesses on how they will improve the efficiency of
their internal operations and how they will better serve customers."
International Paper is a worldwide producer of printing papers, packaging
and forest products. The company also operates specialty businesses and a
broadly based paper distribution network. Headquartered in Purchase, N.Y., the
company has 27 U.S. mills and operations in 31 countries, employs 87,000 people
worldwide and exports its products to more than 130 nations.
<PAGE>
International Paper Company
Summary of Consolidated Earnings
Preliminary and Unaudited
(In millions except for net sales and per share amounts)
<TABLE>
<CAPTION>
Three Months Ended
March 31
-----------------
1997 1996
--------- ---------
<S> <C> <C>
Net Sales (In billions) $ 4.9 $ 4.8
--------- ---------
Earnings Before Interest, Income Taxes and Minority Interest 238 461 (a)
Interest expense, net 130 125
--------- ---------
Earnings Before Income Taxes and Minority Interest 108 336 (a)
Provision for income taxes 40 163 (a)
Minority interest expense, net of taxes 34 75 (a)
--------- ---------
Net Earnings $ 34 $ 98 (a)
========= =========
Earnings Per Common Share $ 0.11 $ 0.36 (a)
========= =========
Average Shares Outstanding 300.6 268.9
========= =========
</TABLE>
(a) Includes a $515 million pre-tax restructuring and asset impairment charge
($362 million in after taxes or $1.35 per share) and a $592 million pre-tax
gain on the sale of a partnership interest ($336 million after taxes and
minority interest expense of $1.25 per share).
<PAGE>
INTERNATIONAL PAPER
SALES BY BUSINESS SEGMENT
Preliminary and Unaudited
(In Millions)
Three Months Ended
March 31,
------------------------
1997 1996
---------- ----------
Printing Papers $ 1,380 $ 1,355
Packaging 1,190 1,135
Distribution 1,120 1,185
Specialty Products 860 860
Forest Products 605 575
Less: Intersegment Sales (293) (312)
---------- ----------
$ 4,862 $ 4,798
=========== ==========
