The BillerudKorsnäs board has today approved a SEK 1 280 million investment program to strengthen the leading position of the company in kraft papers for packaging applications. The investment will enable further growth in attractive market segments and at the same time streamline the company’s production structure. The investment program will result in the Skärblacka production unit in Sweden being developed into a world leading center for machine glazed, MG, kraft paper production. The program includes relocating the BillerudKorsnäs MG paper machine in Tervasaari, Finland, to Skärblacka and investing in surface treatment capacity on the existing paper machine 7 in Skärblacka. The Tervasaari machine is one of the largest MG paper machines in the world. In Skärblacka it will be fully integrated to pulp production which will give it a highly competitive position in the white MG paper market. The surface treatment capacity at Skärblacka PM7 will allow further functionality to be added for applications within food packaging, medical packaging and release liners.
SECOND QUARTER 2020 HIGHLIGHTS
*Second quarter net earnings (loss) attributable to International Paper of $266 million ($0.67 per diluted share), compared with $(141) million ($(0.36) per diluted share) in the first quarter of 2020 and $292 million ($0.73 per diluted share) in the second quarter of 2019. First quarter 2020 net earnings included an after-tax charge of $337 million ($0.85 per diluted share) for the impairment of the net assets and write-off of foreign currency translation adjustment following the announcement of the sale of our Brazil Packaging business.
*Second quarter adjusted operating earnings* (non-GAAP) of $305 million ($0.77 per diluted share) compared with $226 million ($0.57 per diluted share) in the first quarter of 2020 and $460 million ($1.15 per diluted share) in the second quarter of 2019
*Second quarter cash provided by operations of $890 million and year-to-date of $1.5 billion compared with $1.8 billion year-to-date in the same period of 2019
*Liquidity position of $3.6 billion at the end of the second quarter compared with $3.5 billion at the end of the first quarter, which reflects cash and unused committed facilities
“International Paper delivered solid earnings and generated strong cash from operations while navigating the COVID-19 pandemic and its significant economic impact,” said Mark Sutton, Chairman and Chief Executive Officer. “Our performance demonstrates the strength and resilience of our employees, our diverse customer base and our world-class manufacturing and supply chain capabilities. Looking ahead, we will continue to focus on cash generation to reinforce the company’s financial strength as we manage through ongoing uncertainty.”
Sutton added, “The health and safety of our employees remain our most important responsibility. I am proud of their ongoing commitment to take care of each other and our customers.”
Industrial Packaging operating profits in the second quarter of 2020 were $449 million compared with $470 million in the first quarter of 2020. In North America, earnings were stable, reflecting seasonally lower export containerboard sales volumes and lower sales volumes for boxes as demand slowed from elevated levels in the first quarter, as well as the impact of one less shipping day. Input costs were higher driven by recycled fiber costs. The volume and input cost earnings impact was mostly offset by strong operations and cost management, lower maintenance outage expenses and lower wood, energy and freight costs. Second quarter 2020 earnings benefited from insurance recoveries related to the Rome fire and Bogalusa recovery boiler event. In Europe, earnings decreased driven by lower sales volumes due to the impacts of the COVID-19 pandemic in all regions and seasonality in Morocco, partially offset by improved margins reflecting a favorable product mix and favorable foreign currency impacts, primarily in Morocco.
Global Cellulose Fibers operating profits (losses) in the second quarter of 2020 were $(10) million compared with $(54) million in the first quarter of 2020. Earnings improved driven by higher average sales prices, higher sales volumes reflecting continued strong consumer demand driven by the COVID-19 pandemic, strong mill operations and cost management and lower planned maintenance outage expenses, partially offset by the non-repeat of a favorable inventory valuation adjustment in the first quarter of 2020.
Printing Papers operating profits (losses) in the second quarter of 2020 were $(11) million compared with $96 million in the first quarter of 2020. In North America, earnings decreased significantly driven by lower sales volumes and increased economic downtime reflecting the unprecedented demand impact of the COVID-19 pandemic. Strong mill operations and cost management drove lower operating costs. Maintenance outage expenses were also lower. In Brazil, earnings decreased significantly due to lower sales volumes and economic downtime driven by the demand impacts of the COVID-19 pandemic and unfavorable foreign currency impacts, slightly offset by lower operating costs. In Europe and Russia, earnings were also significantly impacted by the COVID-19 pandemic, resulting in lower sales volumes and economic downtime. Maintenance outage expenses were higher, partially offset by lower operating costs in both regions.
details at: https://internationalpaper2015.q4web.com/news-releases/press-r/2020/International-Paper-Reports-Second-Quarter-2020-Results/default.aspx