International Paper sees earnings trough in Q1

The company stated in its Q4 earnings call last night: “Overall, we believe the demand environment will continue to improve across our portfolio, and we have initiatives focused on improving mix and margins in both businesses. We expect the first quarter of 2024 will be an earnings trough due to seasonally low volumes, seasonally higher costs and unfavorable impacts from the January winter freeze. Also, the majority of prior publication declines will flow through the first quarter. Regarding demand trends, we expect packaging and fluff pulp markets to grow approximately 3% year-over-year. In 2024, our North American box business may trail the market as we continue to execute a go-to-market strategy focused on margin and mix improvement. Given International Paper’s commercial and operational initiatives, we expect more than $400 million of benefits this year. These initiatives should ramp up through the year and include cost reduction benefits from the closure of our containerboard mill in Orange, Texas, and 2 pulp machine closures at our mills in Riegelwood, North Carolina, and Pensacola, Florida.”