<PAGE>
Exhibit 99
International Paper, Continued.
Page 1
2 MANHATTANVILLE ROAD
PURCHASE, NY 10577-2196
NEWS RELEASE
MEDIA CONTACT: Jack Cox, 914-397-1952
ANALYST CONTACTS: Carol Tutundgy, 914-397-1632
Rochelle Weitzner, 914-397-1623
INTERNATIONAL PAPER REPORTS 25 PERCENT INCREASE IN EARNINGS PER SHARE
July 11, 2000
Purchase, N.Y. -- International Paper today reported improved second-quarter
2000 earnings of $315 million ($.75 per share) before special items.
Second-quarter results represent an increase of 25 percent or $.15 per share (or
$66 million) compared to first-quarter net earnings of $.60 per share (or $249
million) before special and extraordinary items. Second-quarter 2000 earnings
represent more than three times the earnings ($.24 a share, or $99 million,
before special and extraordinary items) reported in the comparable quarter a
year earlier.
"This is our highest level of quarterly earnings since the last quarter of
1995," said John Dillon, chairman and chief executive officer. "We are achieving
our profit improvement goals and reaching our announced merger synergy targets.
The results are very encouraging and we see continued improved profitability
ahead for International Paper."
In June 1999, the company announced a comprehensive plan to improve
return-on-investment (ROI), irrespective of pricing, and the company is on track
to achieve its targeted ROI improvement goal for this year and to realize the
merger benefits savings of $425 million from the Union Camp merger.
<PAGE>
International Paper, Continued.
Page 2
Dillon said that International Paper is monitoring its paper and packaging
markets very closely, and that he is determined to keep the company's production
in line with demand. He added that inventory levels in key product grades were
down month-to-month and below year-end 1999 levels.
With the acquisition of Champion International in June, International Paper took
a huge step forward in its efforts to turn the company into a more focused and a
more profitable company, Dillon said.
"Now that the merger is completed and we have had a closer look into Champion's
businesses, we are even more optimistic about the opportunities this acquisition
will provide," Dillon said. "It strengthens both our uncoated and coated papers
businesses, gives us a great deal of flexibility in our U.S. manufacturing
system and provides significant cost-reduction opportunities. In addition,
Champion's businesses in Brazil and Canada are very well run and enjoy strong
market positions."
Dillon said International Paper is moving quickly to achieve the $425 million in
Champion-related merger synergies previously announced. The cost savings will be
achieved by integrating manufacturing operations, reductions in duplicate
overhead costs and improved purchasing efficiencies.
The company had previously announced that it would divest more than $3 billion
in assets during the next 18 months as part of its increased focus on core
businesses. During the quarter, the company initiated plans to explore strategic
alternatives including the possible sale of its Decorative Products Division,
Flexible Packaging business, Petroleum and Minerals business, Chemical Cellulose
business and its interest in Bush Boake Allen. The company will have more
divestiture announcements during the next 18 months, and is confident it will
reach its goal within the stated time frame.
<PAGE>
International Paper, Continued.
Page 3
Second-quarter 2000 net sales were $6.8 billion, up from $6.4 billion in the
previous quarter. International Paper reported net earnings of $270 million
($.64 per share) in the second quarter of 2000, after special items, compared
with net earnings of $378 million ($.91 per share) in the first quarter of 2000
after special and extraordinary items.
Special items in the second quarter included a charge of $75 million before
taxes and minority interest ($45 million after taxes and minority interest, or
$.11 per share), primarily for facility closure and severance reserves.
BUSINESS BY BUSINESS PERFORMANCE
U.S. Printing and Communications Papers earnings were up from the previous
quarter. Higher average selling prices and improved mill operations offset
reduced shipments and downtime taken to balance inventories. During the quarter,
International Paper took 125,000 tons of downtime in uncoated freesheet and
plans to take an additional 35,000 - 40,000 tons per month, or roughly 10
percent of its uncoated capacity, in July and August. Coated papers reported
strong earnings and average prices that were $42 per ton above the first
quarter.
In the European Papers business, external markets as well as mill performance
continued a positive trend. Demand for uncoated and coated papers were up
compared to the same period a year ago, and imports have fallen significantly,
further contributing to improved external market conditions. Uncoated prices
still remain $100 per ton below U.S. prices, largely due to currency imbalances.
Second-quarter earnings for the Industrial Packaging segment reflected the full
impact of the containerboard and container price increases and further internal
sales and operations improvements. During the quarter, 165,000 tons of downtime
were taken to balance production with demand, and for maintenance. A similar
amount is planned for July and August, which is nearly 15 percent of total
system capacity.
<PAGE>
International Paper, Continued.
Page 4
Second-quarter earnings for the Consumer Packaging and Industrial Papers segment
improved compared to the previous quarter and second quarter last year,
respectively. The bleached board mills operated very well during the quarter and
price increases announced in February were fully realized during the quarter.
Higher raw material costs were largely offset by profit improvement programs
within the division.
In the Building Materials Group, earnings were slightly lower compared to the
first quarter but substantially down from second quarter a year ago. Lumber
prices declined significantly over the quarter. Lower wood product prices were
partially offset by higher sales volumes, improved product mix and lower
manufacturing and wood costs.
In the Petroleum and Minerals business, earnings were up significantly due to
strong oil and gas prices.
International Paper (www.internationalpaper.com) is the world's largest paper
and forest products company. Businesses include printing papers, packaging,
building materials, chemical products and distribution. As one of the largest
private forest landowners in the world, the company manages its forests under
the principles of the Sustainable Forestry Initiative (SFIsm) program, a system
that ensures the perpetual growing and harvesting of trees while protecting
wildlife, plants, soil, air and water quality. Headquartered in the United
States at Purchase, N.Y., International Paper has operations in nearly 50
countries, employs more than 117,000 people and exports its products to more
than 130 nations.
<PAGE>
International Paper, Continued.
Page 5
This news release contains certain statements that are not historical facts
and are forward-looking statements (as such term is defined under the Private
Securities Litigation Reform Act of 1995) which are based on current
expectations. The accuracy of such statements is subject to a number of
risks, uncertainties and assumptions which could cause or contribute to
actual results differing materially from such forward-looking statements.
These risks, uncertainties and assumptions include the following: whether
cost-cutting initiatives and other merger-related synergies can be achieved,
changes in pricing levels, the general level of economic activity in North
America, Europe, Asia and elsewhere, fluctuations in interest rates and
currency exchange rates, and the effect on the company of changes in
environmental and pollution control laws.
All numbers stated are preliminary and unaudited.
<PAGE>
International Paper, Continued.
Page 6
International Paper
Sales by Industry Segment
Preliminary and Unaudited
(In millions)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
-------- ---------
2000 1999 2000 1999
---- ---- ---- ----
<S> <C> <C> <C> <C>
Printing & Communications $ 1,620 $ 1,385 $ 3,270 $ 2,835
Papers
Industrial & Consumer Packaging 1,985 1,760 3,790 3,435
Distribution 1,700 1,675 3,450 3,375
Chemicals & Petroleum 365 360 710 710
Forest Products 750 815 1,530 1,600
Carter Holt Harvey 460 400 870 765
Less: Intersegment Sales (100) (399) (469) (692)
------- -------- -------- --------
$ 6,780 $ 5,996 $ 13,151 $ 12,028
======= ======== ======== ========
</TABLE>
<PAGE>
International Paper, Continued.
Page 7
INTERNATIONAL PAPER
SUMMARY OF CONSOLIDATED EARNINGS
Preliminary and Unaudited
(In millions except for net sales and per share amounts)
<TABLE>
<CAPTION>
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
2000 1999 2000 1999(F)
---- ---- ---- ----
<S> <C> <C> <C> <C>
NET SALES (IN BILLIONS) $ 6.8 $ 6.0 $ 13.2 $12.0
----- ------ ------ -----
EARNINGS BEFORE INTEREST, INCOME
TAXES, MINORITY INTEREST AND
EXTRAORDINARY ITEMS 636(a) 87(d) 1,202(a,b) 324(d)
INTEREST EXPENSE, NET 156 123 287 266
----- ------ ------ -----
EARNINGS (LOSS) BEFORE INCOME TAXES,
MINORITY INTEREST AND EXTRAORDINARY ITEMS 480(a) (36)(d) 915(a,b) 58(d)
INCOME TAX PROVISION (BENEFIT) 142(a) (18)(d) 278(a,b) 10(d)
MINORITY INTEREST EXPENSE, NET OF TAXES 68(a) 40 123(a) 74
----- ------ ------ -----
EARNINGS (LOSS) BEFORE EXTRAORDINARY ITEMS 270(a) (58)(d) 514(a,b) (26)(d)
GAINS ON SALES OF INVESTMENTS, NET OF TAXES, -- -- 134(c) --
AND MINORITY INTEREST
LOSS ON EXTINGUISHMENT OF DEBT, NET OF TAXES -- 13(e) -- 13(e)
----- ------ ------ -----
NET EARNINGS (LOSS) $ 270(a) $ (71)(d,e) $ 648(a,b,c) $ (39)(d,e)
----- ------ ------ -----
EARNINGS (LOSS) PER COMMON SHARE
BEFORE EXTRAORDINARY ITEMS $0.64(a) $(0.14)(d) $ 1.23(a,b) $(0.06)(d)
EARNINGS (LOSS) PER COMMON SHARE -
EXTRAORDINARY ITEMS -- $(0.03)(e) $ 0.32(c) $(0.03)(e)
----- ------ ------ -----
EARNINGS (LOSS) PER COMMON SHARE $0.64(a) $(0.17)(d,e) $ 1.55(a,b,c) $(0.09)(d,e)
===== ====== ====== ======
EARNINGS (LOSS) PER COMMON SHARE -
ASSUMING DILUTION $0.64(a) $(0.17)(d,e) $ 1.55(a,b,c) $(0.09)(d,e)
===== ====== ====== ======
AVERAGE SHARES OF COMMON STOCK
OUTSTANDING 421.0 413.0 417.3 412.5
===== ====== ====== ======
</TABLE>
(a) Includes a charge of $75 million before taxes and minority interest
related primarily to facility closure and severance reserves
<PAGE>
International Paper, Continued.
Page 8
($45 million after taxes and minority interest).
(b) Includes an $8 million pre-tax charge ($5 million after taxes) for
Union Camp merger integration costs.
(c) Includes a gain of $385 million before taxes and minority interest
expense ($134 million after taxes and minority interest expense) on the
sale of our investment in Scitex and Carter Holt Harvey's sale of its
share of COPEC.
(d) Includes a $157 million pre-tax charge ($116 million after taxes) for
Union Camp merger integration costs, $36 million of pre-tax earnings
($27 million after taxes) for the reversal of restructuring reserves no
longer required, and restructuring and other charges totaling $113
million before taxes ($69 million after taxes).
(e) Includes an extraordinary pre-tax charge of $21 million ($13 million
after taxes) for the refinancing of high interest Union Camp debt,
which International Paper assumed under the merger agreement.
(f) Amounts have been restated to reflect the April 30, 1999 merger with
Union Camp.
