- International Paper (NYSE:IP) says it is not seeing a rise in packaging demand in Brazil ahead of the Olympics next month, in contrast to surging demand two years ago when the country hosted the World Cup.
- Brazil is in the thick of a severe recession and hopes for an economic jolt from the Olympics, which start Aug. 5 in Rio de Janeiro.
- CEO Mark Sutton says packaging demand in China is rising ~5% YTD vs. 7%-8% growth last year, and demand in the U.S. is growing ~1.5%, at the high-end of a 1%-1.5% growth range in recent years but below 2% growth rates that were more common before the recession.
- IP earlier reported better than expected Q2 earnings on a 6.8% drop in revenue to $5.32B.
- IP reiterates that it expects to close the $2.2B acquisition of Weyerhaeuser's (NYSE:WY) pulp business in Q4.