After difficult first quarter, International Paper sees improving demand; announces U.S. business and printing papers price increases.

PURCHASE, N.Y.--(BUSINESS WIRE)--April 1, 1996--International Paper today announced price increases for uncoated business and printing papers in the United States, citing improving demand and lower inventory levels. Most grades will increase $80 per ton effective April 22.

The company also said that market conditions during the first quarter will cause earnings to fall below most security analysts' estimates of about $.65 per share. Results were adversely affected by low prices in a number of key product lines. In addition, the company said it has taken additional extensive production curtailments in March to control inventories. First-quarter earnings were also affected by start-up costs, which were anticipated, at a number of facilities and bad weather conditions throughout much of the country.

The company said further that current analysts' estimates do not reflect either the recently announced gain of $1.25 per share on the West Coast transaction, involving IP Timberlands Ltd., or a previously announced pre-tax charge to first-quarter earnings of about $1.35 per share for profit improvements.

International Paper, an official sponsor of the 1996 Olympic Games, is a worldwide producer of printing papers, packaging and forest products. The company also operates specialty businesses and a broadly based paper distribution network. International Paper, headquartered in Purchase, N.Y., has 27 U.S. mills and operations in 31 countries. International Paper employs 88,000 people worldwide and exports its products to more than 130 nations.

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