Jul 31, 2008. /Lesprom.com/. International Paper Co. said its 2Q profit jumped 20%, beating Wall Street's estimates, as strong international sales helped offset rising energy and raw material costs. The company's shares jumped 14%, The Associated Press reported. The paper-products company said it earned $227 million, or $0.54 per share, compared with $190 million, or $0.44 per share, in the year-ago quarter. On an adjusted basis, the company earned $235 million, or $0.56 per share, compared with $223 million, or $0.52 per share, in the 2007 quarter. Analysts polled by Thomson Financial, who typically exclude one-time items, expected earnings of $0.39. Shares rose $3.40 to close at $27.72. Revenues at the Memphis, Tenn.-based company rose 10% to $5.81 billion. Earnings at paper, packaging and building supply companies are getting squeezed by higher raw material costs and falling demand for their goods as the U.S. economy and housing market languish. CEO John Faraci credited strong operating performance, cost management and good results from overseas for the higher profits. But he added that higher-than-expected costs in areas such as freight, energy and raw materials continue have a negative effect. International Paper has been reorganizing since 2005, selling off land, sawmills and other assets to move away from forest products and focus on making uncoated paper and containerboard. The company is in the process of buying Weyerhaeuser Co.'s containerboard business for $6 billion. "It was a very impressive quarter that blew away the street consensus," Joshua Zaret, an analyst with New York-based Longbow Research, said. International Paper also said it has agreed to sell 5,200 hectares of subsurface mineral rights located in the Haynesville Shale natural gas formation in northwest Louisiana to Chesapeake Energy Corp. for close to $263 million. Faraci said the money will be used to pay down debt.