IP - Earnings call transcript Q2 2024 | International Paper Company

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Operator

Good morning, and thank you for standing by. Welcome to today's International Paper Second Quarter 2024 Earnings Call. [Operator Instructions] It's now my pleasure to turn the call over to Mark Nellessen, Vice President, Investor Relations. Sir, the floor is yours.

Mark Nellessen

Thank you, Alan. you International thank Earnings Second and Call. morning, for Paper's joining Quarter Good

morning Chief Officer. Andy Tim speakers are Our this Silvernail, Vice and Nicholls, President Executive Chief Financial Senior and Officer;

of There information disclaimers. is including at beginning important certain our the legal presentation,

call, actual during make will and materially statements and such results to to this are other factors can forward-looking These forward-looking in releases and differ reports uncertainties. For the and that our be that subject U.S. we Commission. example, Exchange statements risks with could press found cause filed from Securities

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

turn it to over Andy that, With I'll Silvernail.

Andrew Silvernail

Mark. to Thanks, IP, dedicated excited team afternoon, mission history, Americas, all Europe. and I have important our the with where joined good years in I'm are to consistent friends joining with CEO system. the as people. strong, we IP I Prior in rich to morning of spent everybody our talented Good and delivered XX/XX customer through spent embracing great Corporation, on teams, also a several where premium. decade of obsession equity operating impact IDEX private and a speed results and an working

and dimensionalizing investors. on powerful to goal in absolutely approach a the with solid suppliers to I opportunity The company aligning improvement is and a that XX in employees, my a I and speak lot the line how the fact-based insights, bottom through underpinnings with of matters experience, of I asked the been opportunity potential. and improvement IP. company its diligence, my times team mission, a an many very the deep journey been with plan. first learning launching why I've customers, rough. company for upside It's is a of terms spent found with getting diamond that similar It significant days announcement, opportunity since my a a acquisitions.

initial this All of opened beliefs and has reinforced new my insights.

turn X. Let's Slide to

quarter, I'm So talk to later presentation, going differently case I'm what talk going before do improved And for through change planning significantly in about go International drive change the also performance. the Paper. to IP in to we about the significant and to we're

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facts debut of I owners [ years XX know are These see can the IP of as You that here. ] you appreciate.

underperformed metric. meaningful every We have on

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choices deterioration been resource in has some go capital performance exacerbated to IP's by allocation. allocation X. Slide important Let's and very

we returning the $XX shareowners, past than over sheet. billion, improving cash decade, investments more and see spent the balance to can making You including

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used if about used poorly. more attractive repurchases. IP of into when grow But create value-destructive dividend it I can as if performance our think Both really share how billion current dividend. these improves. an you substantial and will as but we've at the tools we and repurchases, than share can We level pay $XX matters. it But support do will dividends value spent are also on well

not shares on As opportunity purchase factors with expect. maximizing when market most cash and value. returns IP not acquisitions is companies, mind generated, have generated in and the in $X we spend, remaining intrinsic $XX The but on based the of the billion billion CapEx

to turning now X. Slide I'm

and Importantly, far. our capital saying the spending with drive more push on we that can't but too not productivity have XXXX I'm customers that performance we envelope lagged. efficient than since investments for be competition, our

much in capitalized well are of ahead too curve. capacity mills and advantaged, spent unproductive we our on While the haven't stayed

have our in system. under-invested box We

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through turning the it's is impact sales problem. the page that a destiny. good slippage important and modest of The can What control. up investment The the on of our we're that reliability probably our Slide customers. ballooned lack control here go slide our part this most here businesses that This back growth. and We to going show today, I'm contributed attack of directly have into on is allocation. in Operating this own the doesn't to capital costs to for has is X. cost

the Reliability, We But cost recently, over is to share and and market we sensible up market. again, continue here volume its a has made know in how majority term. our done defined factor the our the destiny. to and loss ourselves this our delivery made commercial we're reverse that lost in important vast bed own of for past our commercially talent, control correctly over ramping most investing under over incentives. We've near of value trade-offs and We've the work capability own share decade. will as customers. quality, service The the can lot position

other customers down. let where have share we lost We

we change leader some more reliability. to delivery, corrugator will the on-time it being is share We by and capacity our We the arrest made slide. do up. in But in solid converted to have and progress

I'm from now work build turning ethics. strong and hard a great Slide has integrity. organization, where to our to a we with change We really to to I'll foundation have and within improve. thing XX. culture a This IP I about this things talk on of is here.

experienced organization. North to away They thing the and critical the We is to job packaging few and The people strongest many. from on reality and face trivial are team significant American finding to is focus and willing My very have franchise. My build kicked. them getting align we our butts them tired to win. the I'm talented, have their a of down wants change. the up from

is potential and right mentioned franchise we as packaging financial the have with has strategy. Our valuable I strong incredibly tremendous foundation. earlier, And a upside

to the Turning opportunities for improvement.

structure; strategy outside-in embracing to that reach; X profitable superior differentiation customer-driven XX/XX results. that differentiates align an third, and things: first, and do operating our high-performance team achieve we We and will a cost leverages resources growth; our optimize finally, our system an instill through reliability are toward culture second,

bit, talk to going are embracing about In I'm little to a we drive results. how XX/XX

to the to let and now about quarter I'll me then it outlook. now share highlights So walk the the on turn turn Slide over I'm to performance and through XX. second Tim details. some

saw we higher earnings from got unchanged box year-over-year. but prices driven quarter sequential higher first benefit sailing across across quarter, the seasonally improvement relatively second Our than higher a and portfolio were We the sales volumes. by

the market to were environment, demand. moderately they Regarding stable better

our for close that market, certain repositioning the underinvesting a However, and where from reliability. to optimizing addressing expectations of optimization history regions seeing in and be we reliability volume. from volumes seen expected have market We investing are IP to the and the and appropriately residual overall decline and volumes our continued need continue We're -- and and in pricing have already. came to in we that time. value below effect sure We packaging ongoing we leader markets capacity that in are have will to some to lag make and improvement issues do

over seeing are change. earlier, specific will, to are we're the to It on focused be quarters. I however, X differentiation, mentioned and next leading investing we and messy X indicators positive results As

challenged mill volumes by lower We and expect near-term seasonally to performance higher outage expense. be

turn that, our over With our more performance to I'll to provide and details outlook. Tim quarter about second it

Timothy Nicholls

you, through details XX sequential the around we the I'm where as provide Good Thank the second Andy. everyone. on I'll bridge. morning, now, Slide walk quarter earnings

Recall Box earnings to first well plant and a higher index Second adjusted first freeze Price by from mix by margin the the share, to was that box mix the operating executing quarter driven our $X.XX share per included our compared of quarter the January benefits price per strategy. $X.XX related share drag Go-to-Market optimization strategy and in $X.XX GCF and the as prior quarter. was successfully Ixtac fire. per and as $X.XX flow-through movements as

per Volume was $X.XX by favorable share.

S&A mill our Riegelwood $X.XX favorable machine impact inflation Operations trends our as offset impact we closure transition improve by at following in packaging cost the strategy. per continues largely mill. on Although see deploying expected from to continue efficiencies and to of strategies This the to our based demand business, was spending unfavorable across partially the by we is higher as commercial our in reliability the sequentially. share near volumes and portfolio pulp term

by flat finally, chemicals. lower a the $XX items And by favorably per Maintenance quarter and per second to sequentially overall effective $X.XX were offsetting costs costs OCC costs for due million energy earnings input outages sequentially decreased share for $X.XX corporate impacted were with rate. share and increased freight, or tax in and lower

from prior Packaging Slide Price XX. million due of and segments Turning results index movement. Industrial $XX starting on approximately benefits quarter of was mix with realization to the to second and higher the

Additionally, $XX from approximately and contributed our given contributed higher box the by go-to-market benefit $XX seeing. and higher demand strategy improved approximately $XX of to we was million. million improving mix. margins sequentially are Volume benefits trends and million from mix export earnings stable

our volume term. making choices our expected, as Box Go-to-Market in is that impacts the near However, strategy about

to and industry us and more unfavorable costs was primarily Go-to-Market strategy our Box $X trail our we outages the Although million to allow of higher spending mix the the costs we improve Operations expect margins long and inflation, Planned million for reliability. to over will the sequentially believe due than by improve lower and favorable, few energy S&A $X impacts million, higher quarters, due $XX were to term. maintenance higher offsetting sequentially OCC costs. next were input to

I'll to driving sequentially benefits in focus Volumes lower for mix pulp most business Cellulose our and continue cover higher from relatively Fiber demand index offset attractive commodity absorbent Moving to customers was segments. and we the aligning quarter. absorbent pulp grades to by GCF million price Slide as XX. the the of higher as strategically flat reduction was sales and commodity mics strategy, second movement was and $XX the overall Price Global optimization improved with grades. sequentially on by

by lower chemical in maintenance higher Operations sequentially million $XX And quarter costs. Riegelwood, closure outages the million benefit wood by machine $XX our energy -- as of finally, is costs, million. North quite costs to $X was and mill offsetting A were large this cost at was lower in portion pulp with input not second were planned. Planned the in favorable Carolina. favorably by related higher

quarter. Turning to the Slide outlook I'm our provide XX. to for going third

Andy earlier, prior higher increases. we price As the to offsetting expect said costs, and index benefits due from volume decline lower earnings sequential

quarter and third segment, approximately earnings expected by cellulose our to Packaging will be in for fibers. be flat For global Industrial $XXX sequentially earnings relatively down the million. are

Now breakdown. let the me Industrial give I'll start you with Packaging.

due of also and mix movement approximately prices earnings higher to as price to America North date. sequentially. $XX Box expect I We lower Volume million shipping result $XX expected seasonally to earnings improve the by index our is to million less would to approximately the export as is related expected day is note million by approximately improvement that in prior go-to-market $XX decrease This demand. strategy. of well and X

benefits approximately earnings higher costs fixed maintenance This costs million. to to reliability decrease energy costs. expense approximately expected And million. labor to spending, $XX is by We decrease summer primarily earnings the unabsorbed expect operations million, and to during $XX costs. costs by approximately lastly, earnings expected are and higher includes by higher outage decrease $XX Higher and higher due input months

Fibers, mix million Volume Global to is to $X due earnings quarter lower million price in earnings demand. we of increase by a result Switching by as $XX index seasonally Cellulose the decrease expect movement. third expected to and approximately to approximately prior

input We costs operations and decrease to is maintenance the increase costs lastly, by third as costs are approximately to expense Lower expected largely expect be $XX approximately by expected to $XX and costs. stable. in quarter as to higher timing distribution outage earnings due spend higher unabsorbed of And million, fixed well million. earnings

to over Andy. With that, it back I'll turn

Andrew Silvernail

on pick back Thanks, Tim. Slide XX. I'll up

an results our that XX/XX shareholders. became IDEX, part delivered we and and DNA, system I've customers over At For my TSR tenure. operating produced over embraced for consistently decade, over XXX% of superior has XX/XX a

the One I drive results. found of focus products a methodology that to diligence, on simplifying we that subsegments XX/XX resources profitable that a is enterprise is are can as destroying dramatic the data-driven through IP the Using now few reasons reviewing we my compelling yes as joined value well about customers, creates produce approach, can laser-like critical significant entire this It's where say I XX/XX so that to and and the case very portfolio growth. complexity. trivial functions. our and create many

is become There enterprise. to focus the are Step Step never some products to and then business we through the unlike we our something minimum X, we're going to X quickly steps and we done need we give delivery, it's great on them is itself segments now accelerating methodology. profitable I'm have XX on and simplifying about can service, businesses Step business customers first and in value-based customer segment businesses they for align and talk customer that focus pricing We good to should winning shouldn't so our what uniquely X X, XX/XX want intensity. to attractive shows to entire in XX/XX X to the Slide on to need Different taking we're win. obsession have that markets, place. resource through quality, turning of different results. growth innovation. Step driving resources.

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Now let's XX. turn to Slide

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we and simplify focus will on where customers businesses, First, invest products term will and the differentiate. to long we

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zero Third, each we up business. will

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Turning to Slide XX.

I structure our improve for our investing box in plants for of much mills for environment. investing will point in will for talent. in be and be liberate process in IP EBITDA for us data long-term IP. completed productivity, of upside. Ultimately, started substantial to and launched cost across has resources, very the we the our us attractive drivers applying the performance relentless We create to and advantage and profitability customers. $X and of will optimizing We've mid-cycle believe billion the that commercial I capabilities a sales that for importantly, the our potential towards deliver in opportunity. investing after XX/XX actually joined. be before reliability We and innovation that IP analytics shortly allow rewarded win current these customers I our to key and We The value has XX/XX joined. portfolio cost

turning focused September, begin implementation. accelerate planning my share our I to going We're final you October. working XX/XX earnings to continue laser also update on with we're with in to a commit I'm and and our at to slide conferences. be attending to XX. engage We'll in We're teams show next and road call progress the on you updates.

We expect more drives in and XXX an offer how meetings about change Smith give the learn on DS be that related to And required you an August and summer XX/XX published to and acquisition opportunity it webinar related XX disclosure will will to late held results. XX/XX early documents we fall. in

that. So you'll get an attend invitation to

progress an going Investor to time. in have we're Finally, that opportunity March. This to will an Day share our give at us

them and They me do. turn to to With questions. understand a I mission. going that to this important period say into over we're be to stakes tackle to team. thing to for operator it the you what bought willing time. it. say let hand, I have short last the IP I want and at of the I very after trying people in pushed very able we're found are want thank that, The to is hard People

Operator

[Operator from Instructions] with of Truist Our Securities. question first Mike line Roxland comes the

Michael Roxland

maybe business relative is want a a Obviously, rather unprofitable of Andy, intend business? little you portfolio from is losing EBITDA for the putting more Tim on XX/XX color from for the or and you're the much margin to IP that walked also away Andy, congrats I EBITDA on actually How lower or where business the away quarter. than strategy. other truly money get unprofitable walk to have and box business. to lower Martin, you good you, just

Andrew Silvernail

that's Mike, a question. great

So time look, going happens be you're the a short business, ends is are and and to period very of you're really understanding a over what's to again, what is doing I up this that a not of is for you're actually products first required -- period What is for have you're a aligning lot minimum resources X. And you or resources, exit found time, people an bunch done of experience of what what intermediate segmenting year saying effectively have aggressively call to business. you're true what having those practically many, the times. win. it many your customers That drivers and those happening is

most peanut think get effectively you we most spread What profitability, companies overheads, when peanut your customers so of with your you're butter overhead. And do, what right, is if butter do attractive typically which most they spread overhead. products, is saying overburdened and you attractive most you

usually So butter spreads typical actually accounting -- it them in right, spreads peanut by shows system, it it overhead, revenue. the them a

most up segments end attractive attractive. an of is profitability you for for profitability and an right, overstatement having, your what so less of your And understatement

the showed a when correctly, resources. you're That go appropriate go a you those simplify you this gardening right? segmentation, farming example. why doing you structure that, what being through We That's I and use pictures. found And aligning you're farming I through use example, said, segmentation, we when when

to as of a you you're that the for think That's you make going So you're farm and you're farming thing going decision pumpkins, to what tomatoes for. right? farm it and are decide

actually realize what that simplify, segment different When that's to tomatoes you resources. do. and need going pumpkins So you you we're

kill possibly So a you can if you're as tomato, it. it. to water it give pumpkin And give will going much too you as take much, at

enough so die, together, right? you put you actually just water And them so them of give both if them

tough give what you it's is just going that amount -- you're shortly. a you're customers it's customer can And analogy. segment recover the to what needs, profitability, recover real need with satisfying the is term. And it we pretty true a actually analogy, to say that and actually aggressively found I and where them meeting design, any would to they flourish. right we're volume they returns you but you then are loss historically And because long water that I can you're are going which resources getting drives from of

Michael Roxland

mentioned deploy do you. to My system. how that XX/XX clear. trying Got Very, very you I intend complexity DS keep Because Smith? to with doesn't then mean is, to follow-up add things the simple. you

DS with stand-alone closes, when how approach try ultimately so as you well? can you're Smith us with just it then walk and through deploying being guess, And Smith thinking that I -- DS about do to

Andrew Silvernail

question. another Mike, that's Yes. great

the European is So what right, don't radius, in the thing the overlap. first when the overlap. is, we very in And the start which because influence From XXX first XXX-mile compete on to business, of competitive teams segment. the and The nature don't market little fact of North to the the American happens reality the issues box frankly, happens is, in has want that right? what standpoint, let's buy we principles businesses competitive a geography with the market,

its as is own as in platform we what's important treat so And to acquired it DS Smith, really Europe.

It's into times They of mills, integrating that Smith footprint. done DS have our They multiple a pretty assets relatively the the integrate really, are Europe, They kind a of acquisitions into that small are capable to in There's it's box a a integration I've It's different of people. happens size. in And think in system. Americas large Americas, right? footprint. people, few that there So X small European handful of our as simple up pieces said is past. our they our a as in team have of times the this integration. really will

way have their a punch Europe by we above in that wonderful so the team, weight. way, And

team but the And is that so going way. we're a Europe, overall integration with end terrific happen to to up in going

the we'll the part happen. we was that. third leadership At need corporate that's there's And things should corporate. XX/XX few here specifically is morning. know in the people those regions, are they're work who the be very level. I our get. we are have a clear about to need on matter. subregions focus and And that top incredibly set a out level, so to they we call our And X There in where And corporate things small this team then only we smart so relatively to integration a this savings had really that And that go efforts, are to shared those and them, the at with to very of there get small it's

company that More capable. bring administrative that's really is importantly a it be with unnecessary and want and them right? very public business need compliant, So to scratch, don't this we're is do is we that doing I destroy we to This to we're drive and value, them, is a overburden from in terrific. part right? things What can the going so beautiful is the do books close

start Mike. thinking so And that has upfront, to

Operator

Charlie question will BNP next Our Paribas. Muir-Sands come from with

Charlie Muir-Sands

it and step-up you to and a of talking how hard that XX is it of an were quarter short is that which just you GBP already. called other that regarding as in a the in of about think compare the run we much I now? should the kind then much the million guess one this the relates spending to costs increases Or sequential aspects? out of the spending, -- How bridge of being seasonality into sort of reliability again? ongoing about just ago surge And QX. opposed you back rate Regarding

Timothy Nicholls

Charlie, Tim. it's Yes.

say little So tied second of the I to of bit We do a for have we hold there's underspend quarters, portion the we that's estimate it timing quarter. between did significant reliability. there's and that would a directly

X, the point leading But can is spending, into the third. be getting that can of of it I we next some the in sustainably and it X where terms think So to reliable reliability think system are over capacity. quarters, X, ongoing the of you up open that

Andrew Silvernail

Yes. that, I'd to And add Charlie.

XX/XX One it And X for if then in our importantly, think of you it a about big is put liberating guys. you profits, is And some I of of very So buckets. pockets we and think right? the piece methodology, right? you choices. well in improve we're figure to out for right? it full to you and to and that to this, not resources, from tough know we go we've We've got we resource more have, guys with coming do plenty got asking base money, the how

so this and resources, should we on spending should to liberate able self-funding. And We accelerate be reliability. be should

they, going a down, in down by does we're overstate We goal partner in want us. not do clear, XX the right think folks problems reliability. and to concern right? we've great to this or their I to And #X their is. us. hard about customers, important XX-plus you it's be solves want of in vast way, mean about To spot. with is how When right? let folks this let are their not customers, They And percent I'm far, them do regard. who and They to the last #X say the it right? look if at very a X to think have years majority of we on

I've here, this you're spending already is benefits. if you since to focused just reliability look So starting been part the that's something happened right? nice relatively at that's see fix, The to easy is

improves as our if maintenance So think have and dramatically corrugator a dramatically about up spending, that breakdowns, capability. also you you and that liability. improves you And converting assets, right, don't our

a critically So of important this is the game. part

innovation. break right, asset, we is pieces, a X have, reach breadth and geographically into then and If our ultimately the depth reliability, that you tremendous

need self-fund in it. to and we those to need invest we so And pieces

Charlie Muir-Sands

market follow-up my pace been to effectively the of losses far question And go-to-market has It you another relates probably the strategy. it. so since implemented been share back appears weeks that just stable. It's obviously XX

report there's risk down competitive X, still or are line, is customers of you and aren't every going going around We positive yet. months the departures. wave haven't industry to that an X you're payoff confident the on see that NPV But and maybe no there seen obviously data shopping another

Andrew Silvernail

question, a great That's Charlie.

where has we're are would high that, right? what we we terms we gotten know signed, what confidence, know they're we is what done -- been has in and deals where -- So agreements been So know have and been say and I the unsigned, have right? what what not. So tracking of

of XX% terms I that it's time, think through were deals, still the of kind that to Tim time takes the -- was It plus XX% -- of contractual in flow do flows system. takes kind you right? through how think

we're very the with on much track So expectations.

the go-to-market strategy, line If in very really you the accounts have applied look we with are much we expectations. at where this

that good. So feels

That's that in now how that and surprise, right? shot it. and I'm what the few is next negative that the show the over they quarters, will was second surprise I up things to signaling needed, The So negative exactly is weren't there being needed a reliability, the up. why lag signaling think and the because showing getting quarter people and they to continue I'm stuff first

business businesses loss. unlike some the quarter into So net those with, share X a that And together that of half go the things say, are market pipeline, book.

business against into something a So at a here, IDEX So hard right? we half quarter. it's went had to have that that. stage, the like in We correlation don't my we about look when book

the that. Tom say do is And at the okay to would We've at really got I'm health to Hammock that. So of we're what I with and And at overall that economy. work working good better call pipeline. really the looks on over get looking know much the you're at based and the way uniquely ability versus much, get to understanding in having that's to time that pipeline, we that a like what team stuff

And so to there. we got better get

Operator

Our will Research question Partners. next from Mark Seaport Weintraub come with

Mark Weintraub

future, how short I'm walk for of trying that those the just to why if it and to can thanks even vision what through or to pain leading exciting that's issues different? of for out be the little is of sort in volumes? much magnitude First, laying still an significant go-to-market Maybe accelerated become term? the And more decline bit reliability, the the reliability work a but has looks of box versus you was an kind

Andrew Silvernail

Yes.

So the go-to-market actually that second you Other, at got total reliability believe in like we've I'll is other that. it and which really XX-XX stuff, on and feel right? called the the part other go-to-market that, balance quarter, and about piece dialed of I in investments look if through of -- shrinks at the now we with we're we call look is If the that right,

out. No, plays but think overall environment. kind moves right? of that's how overall, the the gotten hasn't how robust, pricing And of reliability more it's doing So the gotten shopping I it in So the worse, people environment is has what timing look, it system. more through are

sure reliability make to ongoing ability leaders consistently we're game. our so And in the the basis is on an

take to see not and the with is going And to call. I've are playing chop today. investments some through there, is a that so in little going are conversation mind and be right, mean. out. But we to the doubt look, of I away. call I And X lot hard work a my to Mark, not think the That's years X in my next going to going know I what's had it's or bit It's this. what be we're is people this X there's who quarters, expectation, no time. on bumpy, some And that's That that a as

Mark Weintraub

to the expect be now -- you what year? about know share relative Can IP to year X% shipments this you up last box I to expect share you Can X%. noted be that you to you industry

Timothy Nicholls

For year, the Mark? or for quarter the

Mark Weintraub

year. the For

Timothy Nicholls

the forecast for For negotiations transaction. because with the chop issues [ X% we've with Andy of think how have working Look, fourth volume. that X%, there's can't price and market to and follow-through the year, said we're all it of quarter ] means and play some the hard, out we see level the up a getting competitive then but I got on going and and the these really what down, we're to it's to and to

Andrew Silvernail

there, on I'd the so And just Yes. clear. add very, I think Mark, very call on everyone is

U.K. a that is say cannot quarter And a of whole we're We code. the the being for about We a cagey fourth anything construed it. would actually responsibility you takeover legal things. think to so as that don't trigger forecast have bunch

business, to at through the careful go we through time we we quarter, that specificity how do look going as steps with third have outlook that, the very in course to without not share on of past normal that call. We this proxy. the have through be can we're share we but allowed specific to post So very an some will we go

a we for keep apologize but we opaqueness, that. I have have So responsibility to. that to really

Operator

Gaurav will question Jain from next with come Barclays. Your

Gaurav Jain

me. from X So

in While does this is EBITDA billion just uplift Or BS -- mix billion, include $X to $X EBITDA? from it this

Andrew Silvernail

does was portfolio. included. the IP No, for current not it No, not. is No, that that

Gaurav Jain

like what And has incremental not Sure. it's very the jump big calling EBITDA run really rate and CapEx and been. out in above you then are any a over

these seen investments incremental industry. the more the like significantly So in on than and probably have higher is anything return we

is what So the CapEx -- guidance in for budgeting like properly? you are

Timothy Nicholls

spending think capital the to support value was question So the growth? around I

Gaurav Jain

Yes.

Timothy Nicholls

Yes.

the So a what that billion really to $X $X.X to above support could on somewhere bit target. it strategy. want of we do where largely be the we we we're same We looking within But between because basis, level periods there billion little at invest normally normalized that might around it's that. capital opportunity, and can level of the a is think

Andrew Silvernail

discussion up spread look last if bad eats spending in a would going past, of assets spent to peanut that butter importantly, over to very sins be going the that that that deteriorating, So the look years, whipsaw say to is prepared at mentality, you of our capital remarks, the all that disproportionate I outlined at that capital investments be are think capital right? in you XX of the of X different, chasing how if the the or I I right, amount But so speak, spending dramatic investment. is

focus in and mills plant right be in And the geographies, box right the very to going Europe right? important, so assets is our in on ability that to the U.S. in and

you think IDEX, did When And happen about substantial. at pretty right? So dramatically be pretty that that could change location those it we made by as sheer the choices. we can

went more environment, that competitive to got else, anything than very differently. a drive But we got advantage. over productivity. a It little Our XXX to sustainable of proportioned It about frame. bit. it time points up ROIC proportioned XXX, in it building got And basis right, CapEx, really that proportion environment. got It drove proportioned towards great work

we to be here of have nature great courage the because And how assets, the done. have the make And and can of pull move our tough off, our assets -- we know part so the choices. to I have focus the this is We the it resources just and of to right? know

Operator

come Gabe Wells line the Securities. will question of next from Fargo Your from Hajde

Gabe Hajde

peers. candor I and also thinking I'm getting CapEx peanut I on ] I transparency and differential sort to butter to your Slide prior me relative [ and appreciate the to X, and what the and go points wanted X.X ready for asked question to making the pumpkins of was lunch.

$XX Or million year, have all interpret should costs? that $XXX feet you're of the to, fees X maintenance is -- it get per talking another Should addressed square that? as, million the now million up You we reflected that million to this the costs come think, piece and in $XX that equal. there, else about okay, I think How for differential. does in about that I ops $X.XX there's

Andrew Silvernail

Yes.

option and investment There just to more maintenance operating capital is costs. repair, going up about this it's that think goes is I but in number cost. show into

Gabe Hajde

talked you you're to And the environment wanting some also needs. industry here which then what up necessarily And is self-funded resources up or of capacity, in today's be free seemingly free implications we isn't capacity of what's Okay. could and about work from X that, medium the IP next this to the focus coming important. you need you that hey, Should will? some additional process the be over out as there XX/XX, away system if term, take on we through saying,

Andrew Silvernail

cost, So buckets, You to capacity make overall have mean, think I with overall it about sure very to we are. about we've be when you with to to structural got expect cost be about that. opportunity right? appropriately thoughtful we ultimately, think do do to our got right? be that. where got demand as honest that, costs we But structural successful, we We'll we've the about match as

Operator

Ng next from of will line come Your with Jefferies. the question Philip

Philip Ng

business the through decisions you to people internally? these the be up seeing next to When do places? profitable. in to things of culture then in making aspects, guess Andy, been from the certainly, inspirational of few the this the a fully? side in be drag kind capital IP was make where start to here. in want terms going I a lastly, And informed on on more guess there's and little being you the we more pretty infrastructure, of hard has you're running in and entrepreneurial these the of you some is of kind right positive align question right I do focus that ramp have quarters. the commodity in side my flow presentation many box And how is, more it buying reset reliability, on investments a help

Andrew Silvernail

a of issues major that you major poor think, long-term positive performance right, some when the kind look, dealing with with. the surprises come situation I and one to not deal of be into of need this, like

You what willingness. find. by right? about to and going about worry tell worry I surprised you, find, have capability And to positively the been will you're what the You I you're going extremely

right? and on and pent-up what a the get is specifically, grabbing So on the people just seen team about I is company have running excitement willing to are grabbing very should And frustration is this pent-up able. to way The to run better be XX/XX, desire they it and the palatable.

They've We engage job their has to lot. that. are pace. done to pace great the an a inspiring. this engage and has I've at done ability at moving a this frankly, awful which Again, And been been, with willing group

retired lot any And mean so I down put I've group He with got that. ago, time the We've this law we've people. back went IP mills. an plants law in box a Champion was long got people. time group father I I'll My in as When great and great against up in spent And IP father of IP IP. people a employee. organization, and a of XX-year bought employee. at

whether a asked about his was he after right we safe, or So talked pension me not lot maintenance.

our business. folks a have I affinity real so for And those within

folks folks, and sit in was to a a go fantastic, and in these I went some on I bearings to this these I win. to capable it's location high-return -- is They given we them to need with by I they they need listening there them and hat us list chance win to and and them, allow precision projects people incredibly who fantastic. need I facility, are by allow morning, had win. And our they absolutely these are to to awesome. Riegelwood for talk They're need to I of need when resources facility, know came a how at to do the us the from they maintenance us to focus And the for right? training

really the feel about about the good I engagement. and So team

They're recently, are things group. understand very that our into there got events here. the phase, the happened are overall right? talked we the are. really high of And the sense we've this, it, which They other have people very phase where got they right? and phases that have into buy-in. And One that tough of stakes what next solidify urgency going this is Look, and about, capable we're of In are, those had performance kind within next you people. buy-in, frankly, is

first So we've that test. passed

move of second very And the smart got is got doing have things. will the them. right? that. but to very test we've about You've intentionally, do we're also quickly, The -- be hard now you go that to to now, Right be move to going

think do of think that to with ready need them. you ahead customers, win you and well. do do make and you where intentionally curve, so to with to I invest got those to not sure that win team strategies the you're you very how and You've we've is winning But this and got customers, of hurting that. about

Philip Ng

aligned of you've Got some of you. for pricing, net do KPIs where engagement? place you and and put aligned you have customer the decisions infrastructure managers promoter in to stuff more work reliability capital Have scores and to force you box where terms sales with make then in these the overinvested be And perhaps? kind need all of

Andrew Silvernail

That's a question. great

call the at X things obviously, having across clarity right? the is of customers owners. better we've company So got for those that here results to we've really get So results our metrics drive And drive scorecard, -- of the things the and I it of got our that for tons data.

has You the tons data got But data. environment, of out. process can that imagine to matters really our there's stick

So the full on-time basic profitable basic in ones. the stuff are around and safety, growth. Those quality, productivity

Rapids, our they're upstream what capabilities. our that probably Iowa and there. in they And just Cedar capability, OCC in an between linkage mill a the a job. terms It's team last happens was I week, does reliability job the phenomenal great does of leader terms have production -- a in of

you metric. You it, name name the

ton, also from are levers. in first they There And the understand fleet probably or outstanding that perspective. right? so per cost and They're the second

really And they're great you what of really kind so a demonstrate to of when measure forerunner, they and speak, happens cause effect. so

that. seeing are we So

better at We've right? price price room your important, You've And important. you getting be very the to competitive you to -- side, value, got in as commercially, volume Specifically go. to you about value. is growth to market, versus however, very is to that that got right, they're profitable competitive, tied got got that. understanding, and think the be You've moving more to customers incentives commercial to right? see got we're where understanding

because something people and tied supply We And better. chain. sales that the their capability we're we're those have improving and talent to be work you do, that that all terms capabilities. through way are your and clarity to that's get production of incentives seeing of business through to got metrics way the metrics we've number across pipeline customer the grow from to of the the going all to have And got in we but have significantly of our the

Operator

RBC. final Your Matthew comes McKellar question with from

Matthew McKellar

EBITDA And view that in contribution with a may is to to any that able is to you the on that achieve of going line target. fibers specificity that maybe target that, time an approximate the sense embedded more billion $X from business core business maybe whether give global Are around give updated be cellulose forward? there us IP

Andrew Silvernail

Yes.

apologize. things. a had as question with and and forecast, can't, involved messy Smith the wrestled -- do, So it can it look, But of and we lawyers that terms in of a triggers whatnot. we internally we I to we're just whole DS talk We we to and timing, with imagine, you if bunch process, constitutes as

is careful like So not years number. What right? not away, forever would about of very, that say So and it's is I talking we're very we something away. a XX mid-cycle that. that. have It's not to be

to those my who track very, move, to you to be move, and And you is know important. that's so me, and know going for going we're very of record

Specifically, as GCF, the more talk about let it to, the me you we whole portfolio, to portfolio. we're from that looking time. whole about have our right? talk at have all do And you

very do May have that make said transparent don't a started not You decision-making And I and have X the to the out all I decision. we it been reviewing to a will said those folks was your time and what of our go the will said I've what that internally, people get got I've through to decisions. we process, not to gate once, we is you do it on And And X. you're portfolio. May

things. better, always always those It's do is right? to Sooner better

process. have follow And goal, better. my sooner And so a be that to would is deliberate we

the giant a right? terms no GCF very magnitude, on that of that the impact proportion is there number, overall of expectation small, is So of it's In that.

obviously be to detailed we'll the see allowed be some also, And over And going in to when more we're can when time be so we you're more detailed. more proxy. detailed detail

I'm So filed August, Tim. to in the not be And going in about right? August. It's exactly the sure of, proxy that is timing, Yes.

So to more to the detail the more give. show, give, get within there. what -- again, can detail can road We'll we'll we on you're what give have going bounds we of

give frame, lot we're more So you from detail to quarter between so earnings you the a kind of if here. and going now, days XX bracket that now time third call,

Matthew McKellar

I'll Great. the it Thanks for turn back. help.

Andrew Silvernail

Yes.

decisions important on still I us out a shows plans that think thank work how We've you implementation again much important got make towards of we're to and say based I the look, data everybody. We're work that. facts, to want it's opportunities. and done very building to phase to to much in to that analysis do. some the note So and there is how point have bunch however, very opportunity the It's together, and already clear, we going detailed get we've data to is going these

specific. we will So more get

and now We move we bound of year. the as will end time it the between

think I is away of people have thing the would this. take the that that we vast ask to I key of majority control But

can results control drive to market. We to what our control going own we have in destiny. really move assets that. control over customers, control But the our can can't can outstanding Yes, that. We do. of the our the things time. We We focusing approach and are where control understanding right how and we right business products and right apply on we the we resources

Thank move next everybody to and this your months forward time, the talking So to with your as we over you. very I partnership, that, to much for process. look want thank through here for you I

Operator

in Once today's again, your XXXX Call. we'd to like thank Second for Paper's Earnings you participating International Quarter

International Paper (IP) 24 Jul 242024 Q2 Earnings call transcript