International Paper (IP) Extends 4-Day Drop as Q2 Earnings Dampen Sentiment

We recently published Massive Sell-Off: 10 Stocks in a Bloodbath. International Paper Company (NYSE:IP) is one of the worst-performing stocks on Thursday.

International Paper extended its losses for a fourth straight day on Thursday, slashing 12.85 percent to close at $46.74 apiece after reporting a disappointing earnings performance in the second quarter of the year.

In the first six months of the year, International Paper Company (NYSE:IP) fell to a net loss of $30 million from a $554 million net income in the same period last year. Meanwhile, it registered a $75-million net income in the second quarter alone, albeit an 85-percent drop from $498 million in the same period last year.

Net sales for the six-month period, however, increased by 35 percent to $12.67 billion from $9.35 billion year-on-year, while net sales for the quarter grew by 43 percent to $6.77 billion from $4.73 billion.

“Our second quarter results reflect a full quarter of our combined International Paper and DS Smith packaging businesses, as we effectively implement 80/20 strategies,” said International Paper Company (NYSE:IP) CEO Andy Silvernail.

“In Packaging Solutions North America, our commercial efforts are driving increased revenue, and we experienced seasonally higher volumes and a stable demand environment. However, margins slipped as we continue to face cost headwinds, and we executed a heavy outage schedule. In Europe, demand remained soft and there was a significant increase in depreciation and amortization expense resulting from our acquisition,” he added.

Copyright: zefart / 123RF Stock Photo

Looking ahead, International Paper Company (NYSE:IP) posted a more optimistic outlook for the third quarter, but failed to provide target figures on key metrics.