International Paper Co. (IP) reported first quarter earnings of 4 cents per share, a cent ahead of the Zacks Consensus Estimate. However, the results were down from 24 cents in the prior quarter and 8 cents in the year-ago quarter. Results reflected higher raw material costs.

Including restructuring and other impacts coupled with a prior-year tax credit (special Items), the company reported a net loss attributable to common shareholders of $162 million or 38 cents per share. This compares with a loss of $101 million or 24 cents per share in the prior quarter and earnings of $257 million or 61 cents per share in the year-ago quarter.

Net sales were $5.8 billion in the reported quarter, down from $6.0 billion in the prior quarter but up from $5.7 billion in the year-ago quarter.

Operating profit including special items were $20 million, up from an operating loss of $147 million in the prior quarter but down from an operating profit of $779 million in the year-ago quarter. Excluding special items, operating profit came in at $232 million in the reported quarter compared with $321 million in the prior quarter.

Excluding special items, operating profit at the Industrial Packaging segment decreased to $46 million from $84 million in the prior quarter. Operating profit at the Printing papers segment dropped to $126 million from $139 million reported in the previous quarter. The Consumer Packaging segment had an operating profit of $31 million, down from $49 million in the prior quarter. Results reflected higher input costs.

Forest Products operating profit of $8 million was down from $18 million in the prior quarter driven by fewer land sales.

Earlier this week, the company announced an increase in its quarterly common stock dividend from 2.5 cents to 12.5 cents. The dividend is payable on June 15, 2010, to shareholders of record on May 17, 2010. According to the company, this increase reflects improving global economy conditions, growing demand for its products and improving cash flow outlook.
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