Temple-Inland

International Paper Sees EBITA Rising 38% to $5.1 Billion By About 2015

International Paper Co.

(IP) predicted Thursday its pretax earnings will increase by 38% over the next three years or so, as the company raised its cost reduction goal from the integration of recently acquired cardboard box marker Temple-Inland Inc.International Paper now expects the cost savings from Temple to reach $400 million a year in two years, up from the $300 million forecast previously. More than half of the savings will come from Temple's box operations and reductions in Temple's corporate overhead expenses. The company also forecast that Temple's base sales will increase by $300 million a year, bringing Inland's annual benefit from Temple to about $700 million.International Paper completed the $3.48 billion purchase of the Austin, Texas, company earlier this year. To comply with federal antitrust regulations, International Paper agreed to sell Temple containerboard mills in New Johnsonville, Tenn., and Ontario, Calif., and an IP mill in Hueneme, Calif.International Paper exe...

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