International Paper (NYSE:IP) said Thursday fourth-quarter profits fell nearly 20 percent on weakened sales from its industrial packaging unit, but earnings still managed to beat analyst estimates.
The paper and packaging company runs operations in North America, Europe, Latin America, Russia including Asia and North Africa.
For the quarter ended December 31, profits came in at $257 million, or 59 cents per share, down from a year-ago profit of $316 million, or 73 cents per share.
Excluding one-time items such as restructuring charges and other items, adjusted earnings were 66 cents per share.
Analysts polled by Bloomberg expected earnings of 61 cents a share.
Net sales for the three months slid to $6.36 billion from $6.53 billion a year ago, and fell below analyst estimates of $6.5 billion.
International Paper chief executive, John Faraci, said: "International Paper has consistently delivered strong results for the sixth consecutive quarter since the global downturn, generating our best financial results in nearly two decades."
"Sustaining positive momentum in an uneven global economy is challenging, but over the course of the full year ahead we remain confident in our ability to continue to execute at a high level."
The company’s industrial packaging unit – which makes containerboards and recycled linerboard – saw revenues fall to $2.5 million, but the unit's profit jumped 17 percent on stronger mill operations, lower recycled fiber costs, higher box volume and wider margins in Europe.
The printing papers business, which ships printing papers and graphic equipment, posted a 0.6 percent increase in revenue, while earnings fell 19 percent due to higher manufacturing costs.
Profit at the company's distribution unit, xpedx, jumped to $16 million from $9 million due in part to successful restructuring programs.
Last week the company said it had agreed with the US Department of Justice to further extend the regulatory review period for its $3.7 billion bid for Temple-Inland (NYSE:TIN).
"We anticipate entering into a definitive agreement on terms acceptable to all parties," Faraci said on Thursday. "I'm very pleased with where we're headed."
Shares rose 1.75 percent to $31.93 apiece today in New York.
International Paper posts lower Q4 sales, but beats Street views
Last updated: 16:14 02 Feb 2012 GMT, First published: 17:14 02 Feb 2012 GMT