Maybe this will be the catalyst to start Fletcher Forestry (FFS) moving!
International Paper rebounds
Estimate smashed as pricing pressure overcome
By Jeffry Bartash, CBS MarketWatch
Last Update: 1:07 PM ET Apr 13, 1999
NewsWatch Earnings Surprises
PURCHASE, N.Y. (CBS.MW) -- International Paper said Tuesday that first-quarter profits fell 41 percent, but the company surpassed Wall Street's estimates as demand picked up overseas and it was able to make some price increases stick. The company, a component of the Dow Jones Industrial Average, said it earned $44 million, or 14 cents a share, down from $75 million, or 25 cents, a year earlier. International Paper (IP: news, msgs) sharply exceeded the 5 cent consensus estimate of analysts surveyed by First Call Corp. The stock climbed 2 7/8, or 6.2 percent, to 49 1/4. Revenue edged up to $5 billion from $4.9 billion.
"March was by far the best month of the quarter for us. Prices on several of our key products have started to move up in the U.S., and some of our major Asian markets are beginning to recover from the economic problems of last year," said John T. Dillon, chief executive, in a statement. Developing weakness in European economies is, however, "a concern," Dillon added. The company benefited in part from rising prices for some construction goods as the U.S. home industry continued to build near record levels. "Overall, business has clearly improved, and we are optimistic that the price increases we announced will be fully implemented during the second quarter," Dillon said. The company also said it's working to improve inventory controls and reduce costs. |
