International Paper has announced the donation of its Lake Erling property in southwest Arkansas to the American Gamebird Research Education and Development (AGRED) Foundation. The AGRED Foundation will preserve and improve the property to protect wildlife and will maintain the lake for public recreational use in perpetuity. The approximately 7,000-acre donated property includes the lakebed, a controlling dam and a small park that provides public access to the lake. The lake is a man-made impoundment that was constructed in the 1950s as a water source for International Paper's nearby Springhill Mill, which closed more than 30 years ago.
"International Paper is very proud of its legacy of stewardship and community service, and the preservation and donation of Lake Erling for the greater good of the communities around it is a great example of that," says International Paper Vice President of Global Sourcing David Liebetreu. "We are very pleased that we were able to identify an organization like AGRED, that shares our view that the lake is an asset to the community and should be preserved for generations to come. We're confident that under AGRED's ownership, the shared interests of the community around the lake will be balanced with the interests of recreation and conservation, and the lake will endure as a great example of what industry and the charitable community can accomplish when working together."
The Lake Erling dam and water flow are currently operated and controlled under an agreement with the U.S. Army Corp of Engineers, and the fish and wildlife are managed through an agreement with the Arkansas Game and Fish Commission. These agreements will continue under AGRED's ownership.
AGRED Foundation Directors Eric Fletcher and Daniel Thomas, also Lake Erling property owners, feel that Lake Erling is the crown jewel of southwest Arkansas and northwest Louisiana. "AGRED plans to sustainably manage the lake much like International Paper has for the past 57 years and has employed some of International Paper's past Lake Erling managers to continue the tradition," they said.
Arkansas Game and Fish Commission Director Mike Knoedl said he's excited about the future of the lake. "We're pleased to learn the new owners will allow the AGFC to continue to manage fish and wildlife at Lake Erling and maintain public accessibility to this popular fishery," he said.
SOURCE International Paper
International Paper (NYSE: IP) Chairman and Chief Executive Officer John V. Faraci will participate in a question-and-answer session at the Vertical Research Partners Paper and Packaging Conference November 21st, 2013 in New York City. The session is scheduled to begin at 8:15 a.m. ET.
All interested parties are invited to listen to the Q&A session live via International Paper's Internet site http://www.internationalpaper.com by clicking on the "Investors" tab and then clicking on the "Webcasts & Presentations" link. A replay of the audio webcast will be available on the website approximately three hours after the session.
SOURCE International Paper
Ilim Group successfully underwent a qualification audit confirming production compliance of cut size paper at the Koryazhma Mill in line with requirements set for International Paper brands. This event marked the beginning of production of cut size paper under the SvetoCopy brand by Ilim Group, an integral part of Joint Marketing Agreement between OJSC Ilim Group and International Paper. According to that the distribution and sales of all uncoated printing paper produced by Ilim Group's Mills are being managed by International Paper.
"This is a significant milestone in development of Ilim Group and the wider paper industry in Russia and the CIS” said Franz Josef Marx, Ilim Group CEO. “It’s also great news for our customers now that we have the ability to produce SvetoCopy quality paper, a well-known brand and long-time favorite on the Russian marketplace”.
“The Ilim Group is a great example of a very successful US/Russia business partnership,” said Eric Chartrain, Vice-President European Papers and IP Russia President ad interim. “The new state-of-the-art facilities at Koryazhma and the Joint Marketing Agreement is a wonderful example of mutual trust and collaboration between two companies to better serve their customers” he added.
International Paper(IP), has announced that its mill at Rajahmundry, The Andhra Pradesh Paper Mills Limited (APPM) (a group company of International Paper), will manufacture HP premium copier paper using Colorlok® technology. Recently, International Paper has installed a new sheeter machine at the APPM mill in Rajahmundry, which allows the company to now manufacture the HP product line of premium copier paper in India. International Paper has an exclusive global partnership with HP to manufacture their copier range since 1996. The company intends to start commercial manufacturing of this premium category copier paper in India in November 2013.
Globally, International Paper manufactures and markets nearly 3 lakh tonnes of HP copier paper annually. The new capabilities in India will target gaining significant share in the domestic premium copier market. Currently International Paper markets HP copier range in over 52 countries through its worldwide production capabilities.
International Paper has invested around INR 100 Cr in this project to manufacture HP branded copier paper and market this product in different states of India through its distribution channels. In due course of time, these products will also be exported.
Commenting on the new product, Mr. Rampraveen Swaminathan, Managing Director & CEO, APPM (a group company of International Paper) said, “IP is committed to bring the best global quality products to consumers in the Indian market and offer some of the finest products. This new product line will strengthen IP’s position in the high potential Indian paper market and is another step in expanding our market presence in India.”
Commenting on the new local manufacturing, Mr. Matt Nuth, Global Business Manager, HP Everyday Papers, HP, said, “We are excited with IP’s new capabilities in India and we look forward to IP growing the HP branded copier in India as it has done very successfully in all the markets worldwide. I am confident that IP will bring all the best practices from its global production capabilities to the Indian market”.
Advantages of ColorLok® Technology
ColorLok® Technology gives exceptional print quality with more vivid colors, bolder blacks and faster drying for less smears. Special additives are incorporated into the sheet to prevent inks from penetrating too deeply, which result in improved optical density. ColorLok® Technology keeps ink near the surface, preventing inks from being absorbed too deeply, making them appear brighter and more vibrant.
The company will manufacture the new products on HP qualified machines with trained employees, ensuring that HP Everyday Papers meet the highest HP quality standards and specifications. The company will source the raw material from local markets, primarily from its industry leading farm forestry program spread across 1.5 lac hectares.
Globally, the cut size market is approximately 15 million metric tonnes and in India is over 600,000 metric tonnes. (Source: PPPC) The Indian premium branded copier paper is growing at an annual rate of 11%.
International Paper‘s stock had its “conviction-buy” rating restated by analysts at Goldman Sachs Group Inc. in a research report issued to clients and investors on Thursday, Analyst Ratings Network.com reports. They currently have a $55.00 target price on the stock. Goldman Sachs Group Inc.’s price objective points to a potential upside of 24.21% from the stocks previous close.
Several other analysts have also recently commented on the stock. Analysts at RBC Capital cut their price target on shares of International Paper from $58.00 to $56.00 in a research note to investors on Wednesday. They now have an “outperform” rating on the stock. Separately, analysts at BMO Capital Markets cut their price target on shares of International Paper from $62.00 to $58.00 in a research note to investors on Wednesday, October 2nd. They now have an “outperform” rating on the stock. Finally, analysts at Merrill Lynch downgraded shares of International Paper from a “buy” rating to a “neutral” rating in a research note to investors on Monday, September 30th. Five investment analysts have rated the stock with a hold rating, fourteen have given a buy rating and one has given a strong buy rating to the company The company has an average rating of “Buy” and an average target price of $46.90.
Shares of International Paper traded up 1.63% during mid-day trading on Thursday, hitting $45.00. 2,317,016 shares of the company’s stock traded hands. International Paper has a 1-year low of $32.95 and a 1-year high of $50.33. The stock’s 50-day moving average is $46.73 and its 200-day moving average is $46.76. The company has a market cap of $20.068 billion and a price-to-earnings ratio of 18.71.
International Paper last posted its quarterly earnings results on Thursday, July 25th. The company reported $0.57 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.57. The company had revenue of $7.34 billion for the quarter, compared to the consensus estimate of $7.41 billion. During the same quarter last year, the company posted $0.46 earnings per share. International Paper’s revenue was up 3.6% compared to the same quarter last year. On average, analysts predict that International Paper will post $3.25 earnings per share for the current fiscal year.
The company also recently announced a quarterly dividend, which is scheduled for Monday, December 16th. Stockholders of record on Friday, November 15th will be paid a dividend of $1.00 per share. This represents a $4.00 annualized dividend and a dividend yield of 9.03%. The ex-dividend date is Wednesday, November 13th. This is a boost from International Paper’s previous quarterly dividend of $0.30.
KBR has announced that it has been awarded a contract by International Paper to provide total maintenance services for one of Russia’s most productive paper mills located in Svetogorsk, Russia. The undisclosed contract value will be booked into backlog in KBR’s third quarter of 2013.
“KBR recognizes that delivering maintenance excellence and reliability improvement is essential to the long-term success of the Svetogorsk mill and we are committed to further strengthening our client’s market position and world-class performance”
For nearly a decade, KBR has provided a full range of total maintenance services to increase production and reliability of the Svetogorsk mill. This contract is for three years with the option to renegotiate commercial terms after the first year.
“KBR recognizes that delivering maintenance excellence and reliability improvement is essential to the long-term success of the Svetogorsk mill and we are committed to further strengthening our client’s market position and world-class performance,” said Darrell Hargrave, President, Industrial Services, KBR. “Over the years of working with International Paper, we have built an exceptionally solid relationship and KBR is delighted to continue this partnership.”
International Paper (NYSE: IP) will release third-quarter 2013 earnings on Thursday, October 24, 2013 before the opening of the New York Stock Exchange.
The company will host a webcast to discuss earnings and current market conditions, beginning at 9 a.m. ET (8 a.m. CT). All interested parties are invited to listen to the webcast via the company's internet site at http://www.internationalpaper.com by clicking on the Investors tab and going to the Webcasts and Presentations page. A replay of the webcast will also be on the company's website beginning approximately two hours after the call.
Parties who wish to participate in the webcast via teleconference may dial +1 (706) 679-8242 or, within the U.S. only, (877) 316-2541 and ask to be connected to the International Paper third-quarter earnings call. The conference ID number is 71203703. Participants should call in no later than 8:45 a.m. ET (7:45 a.m. CT).
An audio-only replay will be available for four weeks following the call.
To access the replay, dial +1 (855) 859-2056 or, within the U.S. only, (404) 537-3406, and when prompted for the conference ID, enter 71203703.
SOURCE International Paper
Last week, International Paper (IP), one of the leading paper producers in the United States, announced that it will close its mill in Courtland, Alabama, leaving 1,100 workers jobless. The shuttering of the plant, one of the firm’s largest, will be done in stages, reaching completion in March 2014.
The announcement that the plant will be closed comes in spite of increasing profits. The day before the plant closure announcement, IP showed that it had boosted its dividend 17 percent and stated that it would buy back $1.5 billion of stock. IP’s net earnings for the first six months of the year rose 79 percent from a year earlier to $577 million, or $1.29 a share. Sales increased 5 percent to $14.4 billion. The company anticipates recording even greater profits during the remainder of 2013 and 2014 due to the closing of the mill.
Closing the Courtland plant will cut the company’s paper making capacity by about one third, or 950,000 tons a year.
Most of the product produced is uncoated paper, used in copy machines, while the rest consists of shinier, coated paper used for magazines and catalogs. The market for copy paper and envelopes has been decreasing for a decade as result of increased use of email, on-line bill payment, and electronic data storage.
IP accounts for about 25 percent of the North American production capacity for uncoated paper. The closing of the Courtland mill will lower the industry’s overall capacity by 8 percent.
The cost of upgraded production lines to keep the plant profitable in a shrinking market is an investment that “doesn’t make sense,” IP executives say.
Tim Nicholls, senior vice president for IP’s printing and communications business, stated, “We explored numerous business and repurposing options for the Courtland mill, but concluded that permanently closing the mill best positions us for the future.”
The mill’s closure is a disaster for its workers. “We never dreamed it would be us,” said Johnny Phillips, who has been working in the mill for over three decades. “The hardest part for me is looking at the youngest members. There aren’t many private employers in the area that pay what we get paid.”
With an annual payroll of $86 million, the mill was the largest employer in Lawrence County. Most workers at the mill averaged between $20 and $32 per hour in wages. Now over 40 years old, the mill also played a strong role in the local community, providing free copy paper to schools.
“It’s hard for us to understand how a mill that has put as much money in their coffers as ours could close,” Phillips said.
While the Courtland mill is being closed, other IP mills which produce containerboard for cardboard boxes and packaging products are thriving.
The state of Alabama has made no serious effort to keep the mill open. “We have absolutely nothing at present time that would help a company like this if they were going to close,” remarked Governor Robert Bentley.
State Representative Ken Johnson has told county residents that they should be encouraged by other prospective jobs which may come to the area, including a Jack Daniel’s cooperage which will purportedly create 200 jobs. “I’m glad to have these jobs that we didn’t have two or three years ago,” he told a press conference.
Regarding new jobs coming to the area, Alabama House Speaker Mike Hubbard told reporters, “I’m not able to discuss that right now, but there are a number of prospects that are interested in coming to Alabama because of the good, positive, pro-business climate we have created in this state that has already yielded results.”
He continued by placing blame on the workers themselves. “This community has been dependent on one industry for such a long time,” he said. “As we look back several years down the road, I believe this could be a positive.
International Paper has announced plans to permanently close its Courtland, Ala. Mill, a facility that is part of the company's Printing and Communications Papers Business. The mill will shut down in stages with a full closure expected to be complete by the end of the first quarter of 2014. This mill closure will reduce IP's North American uncoated and coated freesheet paper production capacity by 950,000 tons, of which 765,000 is uncoated freesheet.
"These decisions are especially difficult because of the impact to long-serving and hard-working employees, their families and the surrounding communities," said International Paper Chairman and CEO, John Faraci. "This decision to permanently close capacity is primarily being driven by demand decline for uncoated freesheet paper products in the United States."
The Courtland Mill produces papers for forms, envelopes, labels, copiers, printers and magazines. The demand for uncoated freesheet in North America has been in decline since 1999 and has recently accelerated as consumers continue to switch to electronic alternatives such as online publications and electronic billing and filing.
International Paper is committed to helping the 1,100 employees impacted by the closure. The company will work closely with union officials concerning benefits and other assistance programs for impacted hourly employees. Salaried employees impacted by these machine shutdowns will be eligible for severance packages and outplacement assistance consistent with company policy. Employee assistance providers will be available to support employee and family needs.
"We explored numerous business and re-purposing options for the Courtland Mill, but concluded that permanently closing the mill best positions the business for the future," said Printing and Communications Papers Senior Vice-President Tim Nicholls.
International Paper's Printing and Communications Papers Business will consist of four paper mills focused on uncoated freesheet, bristols and specialty papers markets:
The company's fluff pulp business is not impacted by this announcement.
"IP's Printing Papers business remains a valuable and strategic part of IP. Our manufacturing, commercial and supply chain capabilities are strong, as is our commitment to serving the North American uncoated freesheet market," Nicholls added.
The company estimates that the mill closure will result in pre-tax noncash asset write-off and accelerated depreciation charges of approximately $550 million and pre-tax cash severance and other shutdown charges of approximately $125 million to be recorded during the remainder of 2013 and in 2014.
SOURCE International Paper
The Andhra Pradesh Paper Mills Ltd. (International Paper group company in India), has announced the inauguration of a new Bielomatick A4 sheeter at its Rajahmundry unit. The new equipment will enable the mill to increase the conversion capacity of branded copier paper.
Mr. Rampraveen Swaminathan(L), MD & CEO, APPM & Mr. William Michael Amick Jr. (R), President - IP India addressing media at the Press Conference announcing the inauguration of Rs. 100 Cr. Cut Size Sheeter
The state-of-the-art sheeting line installed at the new facility is designed to convert paper reels into A4, A3 and FS (Fullscape) size products. The automated process installed in the facility has advanced ream wrapping, carton packing and palletizing capabilities. The conversion capacity of the new facility is 265 MT/day. The extended facility was built in 13 months with an investment of over INR 100 crore.
William Michael Amick, Jr., President, IP India and Chairman, APPM said, “The new investment in the Rajahmundry Mill reiterates International Papers’s commitment to India. The branded copier paper market has good growth potential in India. The advanced sheeter and IP’s global leadership in the copier market will allow us to serve this market with world class products. We continue to be optimistic about the business potential which India offers.”
International Paper which has a number of A4 sheeting lines installed in various countries including the US and Brazil, has for the first time installed this world class technology in India. The Bielomatik A4 line is one of the best sheeting lines in the world and the Rajahmundry facility will now have automation of this level.