<PAGE>
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 13, 1998
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Date of Report (Date of Earliest Event Reported)
INTERNATIONAL PAPER COMPANY
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(Exact name of Registrant as specified in its charter)
New York 1-3157 13-0872805
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(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.)
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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 reported on earnings for the fourth quarter and
the year.
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:
(99) Press Release of January 13, 1998
ITEM 8. CHANGES IN FISCAL YEAR
N/A
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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: January 13, 1998 /S/ CAROL M. SAMALIN
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Purchase, NY Carol M. Samalin
Assistant Secretary
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EXHIBIT 99
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 EARNS $132 MILLION;
44 CENTS PER SHARE FOR QUARTER AFTER SPECIAL ITEMS
January 13, 1998
PURCHASE, N.Y. -- International Paper reported fourth-quarter 1997 net
earnings after special items of $132 million, or 44 cents per share. Special
items included a charge of $125 million ($80 million after taxes, or 26 cents
per share) for anticipated losses associated with the sale of its imaging
businesses, and a gain of $170 million ($97 million after taxes and minority
interest expense, or 32 cents per share) from the redemption of certain
retained partnership interests in Western timberlands and the release of a
related debt guaranty.
International Paper's earnings before special items were $115 million,
or 38 cents per share, a 12-percent improvement over third-quarter net
earnings of $102 million, or 34 cents per share. Sales for the quarter were
$5.1 billion, even with the third quarter. Earnings before special items for
1996's fourth-quarter were $100 million, or 33 cents per share.
Full-year 1997 net earnings before the fourth-quarter special items and
those recorded in the second quarter for restructuring and legal expenses
were $310 million, or $1.03 per share, compared with earnings before special
items of $434 million, or $1.49 per share, in 1996. Sales in 1997 of $20.1
billion were even with 1996 sales. For 1997, the company recorded a loss of
$151 million, or $.50 per share, after special items.
<PAGE>
"Overall market conditions were disappointing for most of 1997," said
John T. Dillon, International Paper's chairman and chief executive officer.
"Although we surpassed our cost reduction goal of $300 million before taxes,
price decreases in our major product lines significantly exceeded that
amount. For 1998, although we expect pricing to improve, particularly in the
second half of the year, we have set even more aggressive profit improvement
targets. We are on schedule to complete all of our previously announced asset
sales before mid-year," Dillon said.
Recent sales include the company's minority interest in Productores de
Papeles, S.A. (Propal), a paper manufacturer based in Cali, Colombia; the
imaging product division's photo business--consisting primarily of Ilford
Photo and related operations--and its Anchor Chemical subsidiary.
Other previously announced divestitures scheduled for completion in 1998
include:
-- the imaging product division's printing business--lithographic
printing plates and graphic-arts films;
-- the Veratec nonwovens division;
-- several decorative panels businesses--two medium density
fiberboard plants, two particleboard plants and the low-pressure laminate
business; and,
-- International Paper's label business.
In 1997's fourth quarter, earnings for the printing papers segment
increased from the third quarter due to improved pricing conditions for
coated and uncoated papers, and strengthening economic conditions in Europe.
These factors more than offset a substantial decline in pulp profits, which
were adversely affected by economic conditions in Asia.
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Earnings from the company's packaging businesses were up over the
previous quarter, largely due to stronger containerboard prices. Profits
were down in liquid packaging, which was impacted by the devaluation of the
Korean won. Separately, the company said today that it has reached a
preliminary agreement on a joint venture with the largest manufacturer of
corrugated boxes in Turkey that would increase International Paper's global
presence in this important market segment.
Forest products earnings rose slightly from already high levels, as
increased profits from timber sales were greater than declines in wood
product prices.
Distribution earnings were ahead of third-quarter results as the
company's European operations returned to profitability.
Specialty products earnings were down, essentially due to weakness in
Asia and a seasonal slowdown in the building products industry.
"For this year, we will take whatever steps are necessary to improve the
financial performance of the company," Dillon said. "These include extending
our internal performance improvements, further strengthening relationships
with customers, focusing all businesses to achieve their return on investment
objectives, keeping inventories at lowest possible levels and not adding any
significant new capacity."
International Paper, in its 100th year of operation, is a worldwide
producer of printing papers, packaging and forest products. The company also
operates specialty businesses in global markets as well as a broadly-based
distribution network. Headquartered in Purchase, N.Y., the company has
operations in 31 countries, employs more than 80,000 people 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 TWELVE MONTHS ENDED
DECEMBER 31 DECEMBER 31
---------------------- ----------------------------------
1997 1996 1997 1996
--------- ----------- --------- -----------
<S> <C> <C> <C> <C>
Net Sales (In billions)......................................... $ 5.1 $ 5.1 $ 20.1 $ 20.1
--------- ----------- ---------- ---------------
Earnings Before Interest, Income Taxes and Minority Interest.... 372 (a) 154 (b) 506 (a,c) 1,332 (b,d)
Interest expense, net....................................... 115 132 490 530
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Earnings Before Income Taxes and Minority Interest.............. 257 (a) 22 (b) 16 (a,c) 802 (b,d)
Income tax provision........................................ 94 (a) 1 (b) 38 (a,c) 330 (b,d)
Minority interest expense, net of taxes..................... 31 (a) 26 129 (a) 169 (d)
--------- ----------- ---------- ---------------
Net Earnings (Loss)............................................. $ 132 (a) (5)(b) $ (151)(a,c) $ 303 (b,d)
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--------- ----------- ---------- ---------------
Earnings (Loss) Per Common Share................................ $ 0.44 (a) $ (0.02)(b) $ (0.50)(a,c) $ 1.04 (b,d)
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--------- ----------- ---------- ---------------
Average Shares of Common Stock Outstanding...................... 302.2 300.2 301.6 292.1
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</TABLE>
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(a) Includes a pre-tax charge of $125 million ($80 million after taxes or $0.26
per share) for anticipated losses associated with the sale of the imaging
businesses and a pre-tax gain of $170 million ($97 million after taxes and
minority interest expense or $0.32 per share) from the redemption of certain
retained partnership interests in Western timberlands and the release of a
related debt guaranty.
(b) Includes a $165 million pre-tax charge ($105 million after taxes or $0.35
per share) for the write-down of the investment in Scitex.
(c) Includes a $535 million pre-tax business improvement charge ($385 million
after taxes or $1.28 per share) and a $150 million pre-tax provision for
legal reserve ($93 million after taxes or $0.31 per share).
(d) Includes a $515 million pre-tax restructuring and asset impairment charge
($362 million after taxes or $1.35 per share) and a $592 million pre-tax
gain ($336 million after taxes and minority interest expense or $1.25 per
share) on the sale of a partnership interest in Western timberlands.
<PAGE>
INTERNATIONAL PAPER
SALES BY BUSINESS SEGMENT
Preliminary and Unaudited
(In Millions)
<TABLE>
<CAPTION>
THREE MONTHS ENDED TWELVE MONTHS ENDED
DECEMBER 31, DECEMBER 31,
-------------------- --------------------
<S> <C> <C> <C> <C>
1997 1996 1997 1996
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Printing Papers......................................................... $ 1,415 $ 1,420 $ 5,550 $ 5,640
Packaging............................................................... 1,270 1,260 4,950 4,945
Distribution............................................................ 1,205 1,160 4,690 4,675
Specialty Products...................................................... 840 885 3,450 3,475
Forest Products......................................................... 710 700 2,715 2,665
Less: Intersegment Sales................................................ (359) (281) (1,259) (1,257)
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$ 5,081 $ 5,144 $ 20,096 $ 20,143
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</TABLE>
