International Paper Company (NYSE:IP) Q4 2016 Earnings Conference Call - Final Transcript

Feb 02, 2017 • 10:00 am ET

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International Paper Company (NYSE:IP) Q4 2016 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Ladies and gentlemen, thank you for standing by. And welcome to International Paper's Fourth Quarter and Full Year 2016 Earnings Conference Call. At this time, all lines have been placed in a listen-only mode. And we will open up for your questions after today's prepared remarks.

It is now my pleasure to turn the call over to Vice President of Investor Relations, Jay Royalty to begin. Please go ahead, sir.

Executive
Jay Royalty

Thanks, Maria, and good morning, everyone. And thank you for joining International Paper's fourth quarter and full year 2016 earnings conference call. Our key speakers this morning are Mark Sutton, Chairman and Chief Executive Officer; and Glenn Landau, Senior Vice President, Finance and Incoming Chief Financial Officer.

During this call, we will make forward-looking statements that are subject to risks and uncertainties which are outlined on Slide 2 of our presentation.

We will also present certain non-U.S. GAAP financial information. A reconciliation of those figures to U.S. GAAP financial measures is available on our website. Our website also contains copies of the fourth quarter and full year 2016 earnings press release and today's presentation slides.

Lastly, relative to the Ilim JV, Slide 4 provides context around the joint venture's financial information and statistical measures.

With that, I'll now turn the call over to Mark Sutton.

Executive
Mark S. Sutton

Thanks, Jay, and good morning, everyone. Thank you for joining us this morning four our call. Before I get into the slides, I wanted to acknowledge that while, as Jay mentioned, Glenn is joining me to review our results and the outlook this morning. Carol is also here with us in the room along with other members of the senior leadership team of International Paper.

So, I'm on Slide 5 , make some opening comments. Before we go through the quarter and full year results, I wanted to make a couple of comments about the incident we had at the Pensacola Mill last week. And first and foremost, we are very thankful that no one was injured in this incident. Our priority is on the health and safety of our colleagues, contractors that work with us and the residence of the community.

We're doing everything we can to help restore the surrounding community and get things back to normal as quickly as possible. I'd like to thank everyone involved for their extraordinary efforts and commitment over the past couple of weeks. Glenn will provide more details later on the call as far as impact in our outlook for Pensacola.

So, as we go back to the content of Slide 5, International Paper delivered another year of strong performance with free cash flow of $1.9 billion and a return on invested capital of about 10%, nicely exceeding our cost of capital. We have made substantial progress on many fronts. Further strengthening our North American Industrial Packaging business, we completed the acquisition of the Weyerhaeuser pulp business in December, which we have combined with IP's legacy pulp business to form our new Global Cellulose Fibers business.

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