Finance
International Paper swings to quarterly loss on $1 billion impairment charge
Published by Global Banking and Finance Review
Posted on October 30, 2025
2 min readLast updated: January 21, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on October 30, 2025
2 min readLast updated: January 21, 2026
International Paper reports a quarterly loss due to a $1 billion impairment charge from selling its cellulose fibers business, impacting market performance.
(Reuters) -International Paper swung to a quarterly loss on Thursday, as the packaging firm recorded a $1 billion charge related to the sale of its cellulose fibers business.
CONTEXT
The Tennessee-headquartered firm recorded the impairment charge related to the sale of its global cellulose fibers business to private equity firm American Industrial Partners for $1.5 billion, announced in August.
The company has also closed underperforming facilities in the UK and Europe and hiked prices.
MARKET REACTION
Shares in the world's largest packaging firm in terms of revenue were down about 6% in premarket trading. They had lost close to 15% of their value this year as of last close on Wednesday.
WHY IT'S IMPORTANT?
The paper and packaging industry has been under pressure from both ends, with demand tapering for the last few years as retailers reduce their inventory, and input costs mounting, exacerbated by tariffs imposed by U.S. President Donald Trump.
A weak paper and packaging market in Europe has also weighed on the industry for several quarters, as supply outweighs demand.
Peer Mondi warned of weak demand and falling prices across pulp and paper grades in early October, sending shares across the industry lower.
BY THE NUMBERS
International Paper's third-quarter net sales of $6.22 billion missed market expectations of $6.50 billion, according to data compiled by LSEG.
The company posted a net loss of $1.10 billion, or $2.09 per share, for the quarter ended September 30, compared with a profit of $150 million, or 43 cents per share, a year earlier.
(Reporting by Koyena Das and Prerna Bedi in Bengaluru; Editing by Sahal Muhammed)
An impairment charge is a reduction in the book value of an asset when its market value falls below its carrying value, indicating that the asset is no longer worth its original value.
Net sales refer to the total revenue from goods sold or services provided, minus returns, allowances, and discounts. It reflects the actual revenue a company earns.
Corporate strategy is the overall plan for a company, outlining its goals and the methods to achieve them. It includes decisions on resource allocation, market positioning, and competitive advantage.
Market trends are patterns or movements in the market that indicate the direction in which it is moving. They can be influenced by various factors, including consumer behavior and economic conditions.
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