International Paper (IP) narrowed its first-quarter profit as corporate expenses more than doubled and weaker export paper prices pushed sales below Wall Street's expectations.
The company became the largest North American producer of corrugated packaging when it bought rival Temple-Inland in February for $3.7 billion, putting it ahead of rivals Packaging Corp of America (PKG) and MeadWestvaco (MWV).
Memphis, Tenn.-based International Paper, which supplies paper and packaging goods around the world, reported net income for the latest quarter of $188 million, or 43 cents a share, compared with a year-earlier $281 million, or 65 cents.
Excluding one-time restructuring charges, it earned 57 cents, ahead of average analyst estimates of 50 cents in a Thomson Reuters poll.
Revenue climbed 4.6% to $6.66 billion, but missed the Street’s view of $6.79 billion.
"First-quarter results reflect solid performance in an uneven global recovery," International Paper CEO John Faraci said in a statement.
Faraci said the company is encouraged with the early progress of Temple-Inland’s integration and has already started capturing synergies.