April 30 (Reuters) – International Paper on Thursday missed first-quarter sales estimates amid uneven demand for packaging materials and inflationary pressures, as it presses ahead with its plans to split into two independent, publicly traded companies.
The Memphis, Tennessee-based company also cut its annual profit forecast on higher interest rates and cost volatility weighing on shipments, particularly in North America and Europe, sending its shares down 5% in premarket trading.
The company now expects full-year 2026 adjusted earnings in the range of $3.2 to $3.5 billion, compared with its prior forecast of $3.5 to $3.7 billion.
Surging energy, fuel and freight costs linked to the conflict in the Middle East have clouded the outlook for consumer goods makers such as International Paper, stoking concerns about margin pressure.
The packaging maker said it remains on track to separate its North American packaging operations from its Europe, Middle East and Africa (EMEA) business, a plan announced in January and expected to be completed within 12 to 15 months.
CEO Andy Silvernail said the company remains confident in the separation despite a tougher macro environment.
International Paper has been narrowing its focus to containerboard and boxes produced on low-cost assets, after exiting pulp and other non-core businesses in recent years.
Its stock has fallen about 30% over the past 12 months, as the company faces investor scrutiny after a turbulent year that included asset sales, impairment charges, DS Smith acquisition and plans to split the business.
International Paper reported net sales of $5.97 billion for the three months ended March 31, compared with analysts’ average estimate of $6.01 billion, according to data compiled by LSEG.
It earned 15 cents per share on an adjusted basis, down from 17 cents a year ago.
(Reporting by Savyata Mishra in Bengaluru; Editing by Shreya Biswas)
