International Paper(IP) has been outlining strategic changes in response to underperformance within the Consumer Discretionary Sector. The company has planned to close several facilities including two in Georgia and others in California, affecting approximately 1,100 employees, and has exited the molded fiber business. The firm has also commenced the restructuring of its North American operations and strategic growth initiative in the Rio Grande Valley.
IP has divested its global cellulose fibers unit for $1.5B and sold five European corrugated box plants to satisfy regulatory commitments from the purchase of DS Smith Plc. Despite challenges, the company maintained its course, particularly in its transformation plan towards sustainable packaging. The firm's CEO anticipates further momentum and is slated to speak at an upcoming industrials conference. IP is also considering establishing a state-of-the-art packaging facility in Salt Lake City, Utah.
Despite financial turmoil and mill closures, IP stock has been bought by several companies indicating potential investor confidence. Moreover, the company is still anticipated to exceed earning estimates and as a top choice for material dividends in 2025. However, IP's layoffs and facility closures sparked some negative reactions amongst their employees.
International Paper IP News Analytics from Thu, 30 Jan 2025 08:00:00 GMT to Sat, 27 Sep 2025 10:52:02 GMT - Rating 3 - Innovation 6 - Information 5 - Rumor -4
