More Paper Companies Report Numbers

International Paper

International Paper reported a 2002 fourth-quarter net loss of $130 million, compared with a net loss of $572 million in the fourth quarter 2001 and net earnings of $145 million  in the third quarter 2002. For the full year, International Paper reported a net loss of $880 million, compared with a net loss of $1.2 billion in 2001.

Fourth-quarter 2002 net sales totaled $6.3 billion, the same as in the 2001 fourth quarter, and slightly below 2002 third-quarter sales of $6.4 billion. Sales for the full year in 2002 were $25.0 billion compared with $26.4 billion in 2001.

Before special items, earnings for the 2002 fourth quarter were $160 million, compared with 2001 fourth-quarter earnings before special items of $58 million  and third-quarter 2002 earnings before special items of $153 million.

For the year, International Paper reported earnings before special items of $540 million, compared with 2001 full-year earnings of $214 million before special and extraordinary items.

Commenting on the coming year, John Dillon, IP’s chairman and CEO, said, "We expect a seasonally weak first quarter, but anticipate improvement in the spring. Additionally, there are upside opportunities associated with the potential passage of an economic stimulus package, improved U.S. dollar and related export competitiveness, as well as the possibility of greater certainty relating to the Iraqi situation. Internally, we will continue to capture more cost and mix improvements and focus on improving our returns on a relative and absolute basis."

Cascades Boxboard Group Inc.

Cascades Boxboard Group Inc. recorded net sales of $238 million for the fourth quarter, compared to $206 million for the corresponding quarter of 2001. For the year net sales were $958 million, compared to $853 million in 2001.

When compared to the corresponding periods of 2001, the increase of 16 percent in net sales for the fourth quarter 2002 and 12 percent for the fiscal year, are mainly due to stronger shipments in North America and higher selling prices in Europe, partly as a result of a favorable exchange rate variation of the Euro. The integration of a folding carton plant in Quebec, acquired in January 2002, and the proportionate consolidation since, January 2, 2002, of the results of Metro Waste Paper Recovery Inc. also contributed to increased net sales.

Earnings before interest, taxes, depreciation and amortization (EBITDA) stood at $18 million for the quarter, compared with $23 million for the corresponding quarter of 2001 and $22 million for the third quarter of 2002. For the year ended December 31, 2002, EBITDA was $89 million compared to $87 million in 2001. The reduction in EBITDA during the quarter is mainly attributable to European boxboard facilities.

Net earnings for the quarter were $4 million compared to restated net earnings of $4 million for the corresponding quarter in 2001. For the fiscal year ended December 31, 2002, net earnings were $10 million compared to a net loss of $5 million in 2001.

Cascades Inc.

Cascades Inc. announces net earnings of $169 million for the year, compared to restated net earnings of $109 million for its fiscal 2001.

Net sales increased by 11.6 percent during the year, amounting to $3.4 billion, compared to $3 billion in 2001. Operating income before amortization amounted to $424 million for the year, compared to $380 million in 2001.

For the fourth quarter, net earnings amount to $40 million, compared to restated net earnings of $18 million for the same period in 2001. Net sales increased by 8.2 percent during the fourth quarter amounting to $843 million, compared to $779 million for the same period last year.

Wausau-Mosinee Paper Corp.

Wausau-Mosinee Paper Corp. announced fourth-quarter earnings of $6.4 million, up 34 percent from fourth-quarter 2001 earnings of $4.7 million, reflecting improvements in the Specialty Paper and Printing & Writing Groups. Net sales were $233.8 million, an increase of more than 4 percent over the $223.8 million reported last year.

Full-year earnings more than doubled to $23.1 million, from $8.9 million in 2001. Net sales were $948.7 million in 2002, compared with $943.7 million last year.

"These results show that 2002 was truly a year of improvement for Wausau-Mosinee, despite challenging conditions for the U.S. economy and the paper industry in particular," said Thomas Howatt, president and CEO. "All three of our businesses posted improved operating results for the year, and our focus on new-product development, cost-effective operations, and benchmark customer service helped us to more than double earnings over year-earlier levels and achieve our sixth consecutive quarter of year-over-year earnings gains.

Commenting on 2003 business conditions, Howatt said, "The paper industry continues to suffer from sluggish market demand and highly competitive conditions. While we will continue to benefit from our marketing efforts and internal initiatives, ongoing economic uncertainty and rapidly rising energy costs will make it difficult to meaningfully improve upon prior year first-quarter results. Over the long term, we'll continue to pursue earnings growth by focusing in three key areas -- product development, customer service, and productivity -- while looking for opportunities to profitably grow the company."

MeadWestvaco

MeadWestvaco Corp. reported net income for the fourth quarter of $36 million. Income was $27 million. Fourth quarter sales were $1.9 billion.

For the full year the company reported sales of $7.2 billion.

In the Packaging segment, operating profit for the fourth quarter was $110 million, up from the prior year pro forma operating profit of $42 million. The improvement reflected higher shipments for paperboard grades, no market-related downtime, lower mill operating costs resulting from merger synergies, the elimination of goodwill amortization and improved pricing for some grades of paperboard.

Full year operating profit in the Packaging segment was $316 million, up from the prior year pro forma operating profit of $246 million, due to higher bleached board and linerboard shipments, less market-related downtime and lower operating costs offsetting lower paperboard prices. Segment sales for the full year were $3.7 billion, compared to the prior year pro forma sales of $3.6 billion.

The Paper segment reported a loss for the fourth quarter of $11 million, an improvement over the prior year pro forma loss of $22 million, due to the benefits of lower market-related downtime, the significant consolidation of facilities and equipment and workforce reductions over last year. These benefits were somewhat offset by lower coated paper prices and shipments.

Shipments of carbonless paper declined slightly; prices were unchanged from the prior year. Segment sales for the fourth quarter were $553 million, compared to prior year pro forma sales of $566 million.

Full year results for the Paper segment were a loss of $71 million, compared to the prior year pro forma loss of $47 million, due to a decline in prices and shipments of coated and carbonless paper, somewhat offset by lower operating costs and manufacturing efficiencies resulting from merger synergies. Segment sales for the full year were $2.1 billion, compared to the prior year pro forma sales of $2.5 billion.

Norampac

Norampac Inc. reported net earnings of $17 million for the fourth quarter of 2002, compared to restated net earnings of $13 million for the same quarter in 2001. For the year, net earnings amounted to $69 million, compared to restated net earnings of $70 million for 2001. The 2001 results were restated to apply the new CICA guidelines on foreign currency translation, which eliminates the deferral and amortization for unrealized exchange gains or losses.

Net sales for the fourth quarter were $298 million, compared to $274 million for the same quarter in 2001. The increase in net sales for the fourth quarter is mostly attributable to additional volume from the recently acquired New York and Leominster converting facilities as well as an increase of 5 percent in shipments of containerboard. Shipments of corrugated products, not taking into account the recently acquired facilities, increased 3 percent in the fourth quarter of 2002 compared to the same quarter in 2001. For the year, net sales amounted to $1.2 billion compared to $1.1 billion for 2001. The increase in net sales for the year is mainly attributable to additional volume from the recently acquired New York and Leominster converting facilities.

Earnings before financial expenses, taxes, depreciation and amortization amounted to $54 million in the fourth quarter, compared to $51 million for the corresponding quarter in 2001. The increase is due to additional volume from both the company’s containerboard and corrugated products sectors and from higher net selling prices for containerboard, which more than offset the 17 percent increase in fiber costs. For the year EBITDA amounted to $212 million, a decrease of $11 million from the 2001 year. The additional volume from the recently acquired facilities and the decrease in energy costs were not sufficient to offset the decrease in the net selling prices and an increase in the fiber costs.

During the quarter, market related downtime amounted to 32,000 short tons or 8.7 percent of the company's North American primary mill capacity. For the year, market related downtime represented 7.3 percent of the company's North American primary mill capacity.

Commenting on the results, Alain Lemaire, president and CEO, stated: "We are very satisfied with the overall results of the year given the current economic situation and are thankful to our employees for their contribution and efforts. Also, we are pleased with the internal growth of both our containerboard and corrugated products sectors.