International Paper Posts Earnings Beat, Misses On Revenue
NEW YORK (TheStreet) – International Paper
reported an earnings beat on Wednesday, but missed on revenue. The Tennessee-based company manufactures materials for consumer and industrial packaging and saw particularly strong results in North America during the second quarter.
The company posted profits of 97 cents a share on revenue of $5.7 billion, beating analysts’ earnings estimates of 92 cents per share but coming up short of Wall Street’s revenue estimates of $5.8 billion.
Shares of International Paper have dropped 9% since the start of the year, with the stock down around 3.5% over the past 12 months.
The company spun off its distribution branch Xpedx at the beginning of July to focus on its core business. Xpedx will merge with Unisource Worldwide, forming a new distribution business called Veritiv. International Paper will retain a 51% stake in the new platform.
Industrial packaging was a bright spot in the earnings report, despite being offset by maintenance costs. International Paper remains the market leader in the U.S. for cardboard and paper products, despite the drop in sales across all major segments and heavy dollar headwinds. Consumer packaging sales were down 5.5%, slumping to $797 million. Sales of printing papers were down 12.1% from last year to $1.2 million.
“Our North American Industrial Packaging business performed very well on seasonally higher sales and increased margins. Operations around the globe ran well and we executed our heaviest quarter of maintenance outages safely and effectively. As we look forward, we are confident in our ability to continue to deliver strong results and remain focused on long term value creation for our shareholders,” said CEO Mark Sutton, in a statement.
Veritiv Becomes a Reseller of Visionstate's WANDA Product
EDMONTON, ALBERTA–(Marketwired - Jul 21, 2015) - Visionstate Inc., a division of Visionstate Corp. (TSX VENTURE:VIS), is proud to announce that a channel sales agreement has been reached with Unisource Worldwide, a Veritiv (VRTV) Company, to resell WANDA, the Smart Restroom Device. This agreement will mean a large expansion of the sales reach with the over 300 sales representatives and an exciting new product offering for Veritiv customers. The upward potential of this large network is very promising. Veritiv has a strong history of sales and distribution, and adding Visionstate’s innovative technology to their offering will enhance their efforts and bring a better way to manage cleaning resources to their clientele.
“We are excited to bring WANDA, the Smart Restroom Device, to our customers. This is another way Veritiv can help shape our customers success by ensuring they have clean, healthy, productive buildings,” said Garrett Gerst, senior marketing manager of Facility Solutions at Veritiv. “As facility advisors, our role is to help customers manage their buildings more effectively, and the notifications and information portal that WANDA provides does exactly that,” continued Gerst. “Property Managers, BSCs and in-house cleaning operations now have a tool that can help them provide higher levels of service to their customers and better control of costs.”
WANDA (Washroom Attendant Notification Digital Aid) is a touch screen device, typically wall mounted in the corridor to the restrooms, which allows guests to request service, cleaning staff to be notified immediately and record their services, managers to better manage their resources, allowing facilities to make business decisions. It is designed to give the public a voice into cleaning service, to increase operational efficiency, and to account for all aspects of cleaning. The advanced analytics provides an insight that historically was not possible; it determines the trends of issues, staff response times, heat map scheduling, and more.
“Veritiv has a vast reach into the target market for WANDA with their sales and distribution of cleaning supplies,” said John Putters, CEO/President of Visionstate Inc. “We have always seen the value that WANDA can bring to public spaces, and it is exciting to have Veritiv see that as well.”
About Visionstate Inc.
Visionstate Inc, a division of Visionstate Corp. (TSX VENTURE:VIS) is the leader in interactive technology software that connects the world with enhanced guest services in public spaces. Since its first installation in 2005, Visionstate has grown to see its software in buildings throughout Canada and the United States. By engaging customers throughout a facility, from touchscreen directories to mobile applications to cleaning management software, Visionstate adds to a building’s experience with its original interactive solutions. More information can be found at www.visionstate.com.
Veritiv Corporation (VRTV), with executive offices in Atlanta, and significant operations in the Greater Cincinnati, Ohio area, is a North American leader in business-to-business distribution solutions. Serving customers across virtually every industry, Veritiv provides print, publishing, packaging, facility and logistics solutions that help shape the success of its customers. Established in 2014, following the merger of International Paper Company’s xpedx division and Unisource Worldwide, the company employs approximately 8,900 team members across more than 180 distribution centers throughout the U.S., Mexico and Canada. For more information about Veritiv and its business segments visit www.veritivcorp.com.