International Paper's 2Q 2022 net sales increased by 13% to $5,389 million, compared to $4,770 million in the 2Q 2021.
2Q net earnings (loss) were $511 million ($1.38 per diluted share) compared with $360 million ($0.95 per diluted share) in the 1Q 2022 and $432 million ($1.09 per diluted share) in the 2Q 2021.
2Q 2022 adjusted operating earnings (non-GAAP) were $459 million ($1.24 per diluted share) compared with $288 million ($0.76 per diluted share) in the 1Q 2022 and $325 million ($0.82 per diluted share) in the 2Q 2021.
"International Paper delivered strong revenue and earnings growth in the 2Q," said Mark Sutton, Chairman and CEO. "We performed well both commercially and operationally, which contributed to margin expansion despite a challenging supply chain and input cost environment. Looking ahead to the third quarter, we expect the realization of prior price movements to outpace higher input costs."
Sutton added, "Our Building a Better IP set of initiatives delivered $65 million of additional earnings improvement in the 2Q, for a total of $105 million through the first half of the year. Given this strong momentum, we are confident in achieving the high end of our full-year target."
Industrial Packaging segment's operating profits (losses) in the 2Q 2022 were $560 million compared with $397 million in the 1Q 2022. In North America, earnings increased driven by higher sales prices for corrugated boxes and containerboard and lower planned maintenance outage expenses, partially offset by higher input costs, primarily for energy and freight. Sales volumes were stable for corrugated boxes and higher for export containerboard. Domestic containerboard volumes were lower. Earnings in the 2Q 2022 benefited from insurance recoveries and other one-time items. In Europe, earnings improved reflecting higher average sales prices in the Eurozone and strong operating performance partially offset by seasonally lower sales volumes in Morocco.
Global Cellulose Fibers segment's operating profits (losses) in the 2Q 2022 were $25 million compared with $(49) million in the 1Q 2022. Earnings improved significantly driven by higher sales prices for both fluff pulp and market pulp and lower planned maintenance outage expenses, partially offset by higher input costs, primarily for energy and chemicals. Sales volumes were slightly higher. Operating costs were lower, reflecting improved mill performance and seasonality.
International Paper is a leading global supplier of renewable fiber-based products.