Paper Giant’s Profits Triple
International Paper Co., the world’s biggest paper and forest products company, today said its fiscal second-quarter net income more than tripled on higher pulp and paper prices and cost savings from recent mergers, beating analysts’ expectations.
Profits in the three months ended June 30 rose to $315 million, or 75 cents per diluted share excluding a $45 million charge after tax on facility closure and severance reserves following its takeover of Champion International. This compared to profits of $99 million, or 24 cents a share, in the year-ago quarter excluding extraordinary items. Revenues in the latest period rose about 12 percent to $6.8 billion from $6.0 billion in the year-ago quarter.
Analysts polled by First Call/Thomson Financial had forecast earnings of 74 cents per share in the latest quarter.
The company, which this spring agreed to acquire Champion International for $7.3 billion in cash and stock, has benefited from higher pulp prices and higher container prices in the quarter, analyst Mark Wilde of Deutsche Banc Alex. Brown. “For IP, the big horse is paper, and in this quarter, the big horse will be better than last quarter,” he said before the announcement.
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Yahoo! Reports Sharp Rise in Earnings
Internet media giant Yahoo! Inc reported unexpectedly sharp increases in second-quarter earnings and revenues as well as overall traffic to its Web properties. The company said its pro forma net income, excluding certain unusual items, totalled $74 million or 12 cents per diluted share in the second quarter, compared with $27.1 million or 5 cents cents per diluted share in the year-ago period. The latest earnings exceeded the consensus analyst forecast for a profit of 10 cents per share.
Yahoo also said that sales grew to $270.1 million from $128.6 million the year before, while page views rose to an average 680 million per day in June, up from 625 million in March.
“The unrivaled global distribution platform we have built for advertisers, merchants, content and service providers along with the diversified set of revenue streams we have created, positions us well to continue our leadership in the future,” Chairman Tim Koogle said.
The company said it now has 156 million unique users worldwide, including 20 million in Japan.
Yahoo shares rallied in after-hours trading after the earnings were released.
The stock had lost ground in recent days amid concerns that its earnings would reflect a sharp slowdown in its rate of growth, or that its revenues would reveal too strong a dependence on advertising from dot-com companies.
Yahoo did not provide much detail on the portion of its revenue that had come from advertising on its site.
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