International Paper second-quarter sales miss estimates amid soft packaging demand

July 30 (Reuters) - International Paper reported second-quarter sales below Wall Street estimates on Thursday and trimmed the top end of its annual profit forecast range, while it restructures operations amid uneven demand for packaging materials.

Soft demand, a weak housing market and uncertainty around tariffs and trade policies have pressured the packaging sector, prompting International Paper to reduce costs.

• The company reported net sales of $6 billion for the quarter ended June 30, compared with expectations of $6.18 billion.
• Sales at International Paper's Packaging Solutions North America segment fell to $3.69 billion from $3.86 billion a year earlier.
• The company now expects full-year adjusted core profit forecast from continuing operations of $3.2 billion to $3.4 billion, compared with its prior outlook of $3.2 billion to $3.50 billion.
• The Memphis, Tennessee-based company said it expects an $85 million hit in the third quarter from the temporary closure of its Pine Hill, Alabama mill after weather-related damage to a critical roof.
• International Paper, which accounts for roughly one-third of the North American corrugated packaging market, announced a series of closures since June, including operations in Texas, Illinois, California and New Jersey.
• CEO Andy Silvernail said in a statement that the company improved mill performance and continued to grow box volumes in North America.
• The company reported adjusted operating earnings per share of 4 cents per share for the quarter. Analysts on average expected a loss of 1 cent per share, according to data compiled by LSEG.
• International Paper is moving ahead with plans announced in January to separate its North American and EMEA packaging businesses into two publicly traded companies.