International Paper Reports 250 Percent Increase in Profits in Fourth Quarter
Undated (AP) _ The company said Tuesday its fourth quarter earnings totaled $113 million, or $2.13 a share, up from $44 million, or 77 cents a share, in the final three months of 1985.
The company’s revenue during that period totaled approximately $1.9 billion, compared with $1.1 billion in the last three months of 1985, an increase of nearly 73 percent, it said.
John A. Georges, International Paper’s chairman and chief executive officer, attributed the jump in earnings to the lower value of the dollar, which strengthened the company’s export market, cost-cutting, and good domestic demand for its products.
In addition, its fourth quarter performance included the proceeds of several one-time transactions, including $41 million from the sale of International Paper’s New York City headquarters and $32 million from the offering of shares in the partnership, IP Timberlands, Ltd.
The partnership owns International Paper’s timberlands, and shareowners take a portion of the profits from the harvesting of timber, said H. Ann Silvernail, a company spokeswoman.
International Paper also reported a $31 million charge to cover the cost of plant closings and relocating its staff to new quarters and an $11 million increase in pension accounting.
For the full year 1986, International Paper reported earnings of $305 million, or $5.79 a share, compared with $133 million, or $2.16 a share, for all of 1985.
Revenue totaled approximately $5.5 billion, a 22 percent increase over $4.5 billion for 1985.