MEMPHIS, Tenn. (AP) -- Paper and packaging company International Paper said Thursday its first-quarter net income rose 69 percent, as it benefited from selling off its Temple-Inland building products division. Its adjusted results missed expectations, however, as demand for the industry's products remains weak.
"The company's overall performance in the quarter was muted by seasonally slow demand across our global operations," said CEO John Faraci. But he said that was partly offset by higher selling prices and cost cutting.
Net income for the three months ended March 31 rose to $318 million, or 71 cents per share, from $188 million, or 43 cents per share, a year ago.
Excluding one-tome items related to selling some operations and pension expenses, adjusted earnings amounted to 65 cents per share. Analysts expected adjusted earnings of 74 cents per share, according to FactSet.
Revenue rose nearly 7 percent to $7.09 million from $6.66 million a year ago. Analysts expected $7.06 billion.
Industrial packaging revenue rose 14 percent to $3.56 billion. Printing paper revenue edged down 1 percent to $1.54 billion. Consumer packaging revenue rose nearly 3 percent to $830 million, and distribution revenue fell 6 percent to $1.39 billion.
Shares fell $1.42, or 3.1 percent, to $44.47 in midday trading. They are still near the high end of the stock's 52-week range of $27.29 to $49.10.