Post on 23-Aug-2020
10th Annual Citigroup Global Paper and Forest Products Conference
December 1, 2005
10th Annual Citigroup Global Paper and Forest Products Conference
December 1, 2005
John V. FaraciChairman & CEOJohn V. FaraciChairman & CEO
22
These slides contain forward-looking statements. These statements reflect management's current views and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied in these statements. Factors which could cause actual results to differ relate to (i) market and economic factors, including changes in the cost or availability of raw materials and energy, competition, demand and pricing for the Company's products, the level of housing starts, changes in international economic conditions, specifically in Brazil, Russia, Poland and China, changes in currency exchange rates, changes in credit ratings issued by nationally recognized statistical rating organizations, pension and healthcare costs and natural disasters, such as hurricanes, (ii) the Company's transformation plan, including the ability to accomplish the transformation plan, the impact of the plan on the Company's relationship with its employees, customers and vendors and the ability to realize anticipated profit improvement from the plan, and (iii) results of legal proceedings and compliance costs, including unanticipated expenditures related to the cost of compliance with environmental and other governmental regulations and the uncertainty of the costs and other effects of pending litigation. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. These and other factors that could cause or contribute to actual results differing materially from such forward looking statements are discussed in greater detail in the company's Securities and Exchange Commission filings.
Forward-Looking StatementsForward-Looking Statements
33
During the course of this presentation, certain non-U.S. GAAP financial information will be presented. A reconciliation of those numbers to U.S. GAAP financial measures is available on the company’s website at www.internationalpaper.com under Investors.
Statements Relating toNon-GAAP Financial MeasuresStatements Relating toNon-GAAP Financial Measures
44
Significantly improve profitability
Strengthen the balance sheet
Return value to shareholders
Significantly improve profitability
Strengthen the balance sheet
Return value to shareholders
Focused Global Paper and Packaging CompanyFocused Global Paper and Packaging CompanyFocused Global Paper and Packaging Company
Transformation PlanTransformation Plan
55
ImproveKey PlatformBusinesses
DivestAssets
Use ofProceeds
TransformingPlan
FocusPortfolio onKey PlatformBusinesses
FocusPortfolio onKey PlatformBusinesses
Key Components of PlanKey Components of PlanFocus portfolio on key platform businessesFocus portfolio on key platform businesses
Uncoated PapersPackagingUncoated PapersUncoated PapersPackagingPackaging
66
Uncoated PapersLeader in uncoated paper
Uncoated paper mill$5.8 B revenue14 paper mills
– 6.6 MM tpy
2004 Results*Brazil 1 mill
500,000 tpy
Brazil 1 mill
500,000 tpy
U.S. 8 mills
4.8 MM tpy
U.S. 8 mills
4.8 MM tpy
W. Europe3 mills
600,000 tpy
W. Europe3 mills
600,000 tpy
E. Europe2 mills
700,000 tpy
E. Europe2 mills
700,000 tpy
* Includes Market Pulp revenues ($660MM) but excludes Fine Papers ($165MM)
77
Uncoated Free Sheet
83%
Bristols17%
U.S. Uncoated PapersU.S. Uncoated PapersShipments by category – Sept. 2005YTDShipments by category – Sept. 2005YTD
Total Uncoated Papers Uncoated Free Sheet
3.1 million tons shipped 2.6 million tons shipped
Envelope21%
Offset16%
Forms14%Other7%
Imaging42%
88
0
0.5
1
1.5
2
2.5
3
Total UFS ImagingPapers
EnvelopePapers
Although U.S. demand for uncoated free sheet is projected to be relatively flat, opportunities exist for excelling in this business
– Imaging paper demand is forecasted to grow over 2% per annum
– Envelope paper demand should grow faster than the total uncoated free sheet category
Sources: RISI
U.S. Demand by Grade2003 – 2009 CAGR
U.S. Uncoated PapersU.S. Uncoated PapersMarket opportunitiesMarket opportunities
%
99
U.S. Uncoated PapersU.S. Uncoated Papers
VIP1 – High Whiteness Papers− Moves IP’s U.S. uncoated
papers to global standard & eliminates perceived quality advantage of imports
VIP2 – Enhanced Performance − More efficient way of making
paper & improves commercial printing performance
VIP3 – Improved Bulk − Direct mail applications
Product innovation – VIPProduct innovation – VIP
1010
U.S. Uncoated PapersU.S. Uncoated Papers
Fewer, bigger, better facilities – all low-cost– Investing in best performing assets
– Transforming the Pensacola, Fla. mill from a 3rd quartile uncoated free sheet mill to a 1st quartile lightweight linerboard mill
– Closing high-cost uncoated paper capacity
Asset optimizationAsset optimization
1111
Investing in Eastover, SC uncoated paper millInvesting in Eastover, SC uncoated paper millU.S. Uncoated PapersU.S. Uncoated Papers
The Eastover, SC mill is IP’s largest and most modern uncoated paper mill
The mill has a first quartile cost position
Rebuilding PM1 in 4Q’05 to improve sheet quality and reduce manufacturing costs ($125 million project)
Focusing the rebuilt machine on value-added grades such as envelope and cut-size papers
1212
Low-cost capacity in E. Europe and L. AmericaLow-cost capacity in E. Europe and L. AmericaGlobal Uncoated PapersGlobal Uncoated Papers
700,000 tpy of uncoated paper capacity at our Kwidzyn, Poland and Svetogorsk, Russia mills
Eastern Europe
Latin America500,000 tpy of uncoated paper capacity at our Mogi Guacu, Brazil mill
Svetogorsk Mill
Mogi Guacu Mill
1313
Uncoated PapersUncoated Papers
Uncoated papers is a key platform businessIP is the largest, best positioned uncoated papers global producer with – Superior return on sales in each region– Strong positions with global customers– Innovative, proprietary technology to differentiate
products– Low-cost positions in U.S., Eastern Europe and Brazil– Superior access to markets
SummarySummary
1414
Prattville, AL
U.S. Industrial Packaging U.S. Industrial Packaging Strong businesses with integrated modelStrong businesses with integrated model
Corrugated box plantContainerboard mill
Terra Haute, IN
Groveton, NH
Savannah, GA
Mansfield, LA
Pineville, LA
Vicksburg, MS
IP has a low-cost containerboard mill system and a growing integrated corrugated box business in the U.S.
IP has a lowIP has a low--cost containerboard mill system and a cost containerboard mill system and a growing integrated corrugated box business in the U.S.growing integrated corrugated box business in the U.S.
2004 Results*
$3.3 B revenue70 box plants7 board mills
– 4.5 MM tpy* Excludes Specialty Papers revenues ($680MM)
1515
U.S. Industrial PackagingU.S. Industrial Packaging
With no new containerboard capacity announced for North America and box shipments forecasted to grow at about 2% per annum through 2007, opportunities exist for excelling in this business– Reduce manufacturing and supply chain costs
– Increase integration level to maximize the profitability of our containerboard system
– Convert Pensacola, Fla. mill to lightweight linerboard, broadening our product offering
– Improve positioning in profitable corrugated box segments
Market opportunitiesMarket opportunities
Source: FBA
1616
Index (1997=100)% Non-Durables Box ShipmentsNon-Durables Industrial Production Index (Weighted %)
Non-Durable box shipments heavily driven byFood & Beverage and Paper & Distribution
NonNon--Durable box shipments heavily driven byDurable box shipments heavily driven byFood & Beverage and Paper & DistributionFood & Beverage and Paper & Distribution
Source: FBA, Federal Reserve, IP Analysis
% of Total Box Shipments
Durables
Other Non-Durables
U.S. Industrial PackagingU.S. Industrial Packaging
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004
18%
32%
51%
OtherNon-Durables
26%
41%
Plastics & Rubber
Chemical
Paper & Distribution
Food, Beverage & Tobacco
Apparel & Leather
Non-durable box shipmentsNon-durable box shipments
83%67%
TextilePetroleum
50%
1717
International ContainerInternational ContainerStrong business with non-integrated modelStrong business with non-integrated model
Corrugated box plantRecycled board mill
IP’s international box business has 36 plants outside N. America, mostly in W. Europe
IP’s international box business has 36 plants IP’s international box business has 36 plants outside N. America, mostly in W. Europe outside N. America, mostly in W. Europe
Etienne, France
Edirne, Turkey
Kenitra, Morocco
Latin America1 box plant
Latin America1 box plant
Europe / N. Africa29 box plants
3 recycled board mills
Europe / N. Africa29 box plants
3 recycled board mills
Asia6 box plants
Asia6 box plants
$920 MM revenue36 box plants3 recycled board mills
2004 Results
1818
International ContainerInternational ContainerAcquired CMCP in MoroccoAcquired CMCP in Morocco
Source: Eurostat, FAOSTAT, CMPE, Societe Generale
Fruit & Vegetable Value into Europe
Euro MM
MoroccoTurkey Israel Egypt Tunisia Other
1,000
750
500
250
0
Purchased for $120 MM– ($80 MM plus assumed
$40 MM debt)IP equity position of 65%4 box plants and 1 recycled board millStrengthens IP’s position in the fruit and vegetable segmentProjected ROI of 15-20%
1919
Consumer Packaging Consumer Packaging Global customers & differentiated products Global customers & differentiated products
Svetogorsk, Russia
Kwidzyn, Poland
Riegelwood, NC
Texarkana, TX
Augusta, GA
Converting plantCoated board mill
IP is the top global producer of coated board and positioned to serve packaging customers worldwide
IP is the top global producer of coated board and IP is the top global producer of coated board and positioned to serve packaging customers worldwide positioned to serve packaging customers worldwide
North America3 coated board
mills1.4 MM tpy
North America3 coated board
mills1.4 MM tpy
Eastern Europe**2 coated board
machines240,000 tpy
Eastern Europe**2 coated board
machines240,000 tpy
* Excludes Beverage Packaging plants and business revenues ($600MM). ** E. European coated board revenues included in Uncoated Papers segment.
2004 Results*
$1.7 B revenue27 converting plants5 mills producing coated board
– 1.6 MM tpy
2020
Consumer PackagingConsumer Packaging
World demand for coated board is forecasted to grow at 3% p.a. through 2010– Folding carton
– Coated bristols
– Aseptic packaging board
Targeting growth in home entertainment packaging in North America and Europe
Expanding tobacco packaging business globally
Market opportunities Market opportunities
Source: Jaakko Poyry
2121
PackagingPackaging
Industrial packaging has an integrated low-cost mill and corrugated box plant system in the U.S.– Growing corrugated box business outside North
America
Consumer packaging serves growing global customers with coated board and valued-added packaging
Both businesses can earn cost of capital returns over the cycle
Summary Summary
2222
xpedxxpedx
xpedx is the largest N. American merchant and integrated with IP’s paper and packaging businesses– 16% of IP’s uncoated paper sales are through xpedx– 25% of xpedx’s sales are IP products
North American merchant distributionNorth American merchant distribution
PrintingPapers60%
PrintingPapers60%
Packaging20%
Packaging20%
FacilitySupplies
15%
Graphics5%
2004 sales mix by category xpedx locations
2323
ImproveKey PlatformBusinesses
ImproveKey PlatformBusinesses
DivestAssets
Use ofProceeds
TransformingPlan
FocusPortfolio onKey PlatformBusinesses
Key Components of PlanKey Components of PlanImprove key platform businessesImprove key platform businesses
2424
$0.00
$0.20
$0.40
$0.60
$0.80
$1.00
$1.20
$1.40
$1.60
9M'04 Price VolumeCost/Mix RawMaterial
LandSales
RealEstate
Corp. Interest Tax Other 9M'05
$.02
EPS $ / Share
$.84
($.29) ($.57)$.70
$.96$.02
$.26
($.17)($.04)$.06
$.13
Wood Costs ($.21)Energy ($.20) Caustic Soda ($.11) Other ($.05)
Paper $.49 Packaging $.25 Other ($.04)
2004 Tax rate 30% 2005 Tax rate 28%
Downtime ($.28) Volume ($.01)
Pension ($.14) Supply Chain ($.07) Other $.04
EPS from cont. ops before special itemsEPS from cont. ops before special items9M’05 vs. 9M’04 Results9M’05 vs. 9M’04 Results
2525
Lower costs to manufacture
50%
Streamliningthe organization
20%
Higher sales volumes/mix
30%
Targeting $400 million per year or $1.2 billion of cumulative profit improvement over three yearsTargeting $400 million per year or $1.2 billion of Targeting $400 million per year or $1.2 billion of cumulative profit improvement over three yearscumulative profit improvement over three years
Profit Improvement InitiativesProfit Improvement Initiatives
2626
Taking $200 million per year of costs out of a $20 billion cost base is achievable
Taking $200 million per year of costs out of a $20 billion cost base is achievable
$200 mm $200 mm
Annual Profit Improvement Target
Total Cost Base$20 billion
Costs to Manufacture
Costs to Manufacture
SupplyChain Interest
& D&A
Buy forResale Costs to
SupportCostReduction
Profit Improvement InitiativesProfit Improvement InitiativesLower costs to manufactureLower costs to manufacture
2727
Energy conservation and substitution remain key imperatives for the enterprise− Fuel cost reduction projects have >50% ROI− Targeting $50-75 million in spending on energy and chemical reduction projects for 2006− Natural gas consumption down 45% at U.S. mills since 2002
30
54
4540
$9.50
$3.45
$5.80 $6.47
0
20
40
60
80
2002 2003 2004 2005 Forecast0
2
4
6
8
10Trillion BTUs $/MMBTU
Natural Gas Consumed Natural Gas Cost per unit
Costs to ManufactureCosts to ManufactureReducing purchased energy costsReducing purchased energy costs
2828
70
75
80
85
2001 2002 2003 2004 2005 YTD WorldClass
77%78% 79%
81%82%
OEE %
* OEE = Acceptance x Availability x Speed Efficiency in U.S. primary mills
Costs to ManufactureCosts to ManufactureImproving overall equipment efficiencyImproving overall equipment efficiency
Improving overall equipment efficiency of U.S. primary mills each year since 2001− Each percentage point improvement in overall equipment efficiency equates to $50 million per year in cost reduction− Targeting world class benchmark for all IP mills
85%
2929
Logistics improvement initiativeLogistics improvement initiativeSupply ChainSupply Chain
IP’s containerboard mill system is using a centralized transportation effort to lower logistics costs– Tons shipped October 2005 YTD = October 2004 YTD– 10% or 4 million fewer miles shipped October 2005 YTD– Proactive railcar management reduced loaded railcars by 1,000
cars per week and demurrage costs by 50% since April 2005
0
25
50
75
100
Tons Shipped Miles Shipped Demurrage CostsLoaded Railcars
Oct. 2004 YTD Oct. 2005 YTD April 2005 November 2005
%
3030
Regional distribution center initiativeRegional distribution center initiativeSupply ChainSupply Chain
2003
Box PlantWarehouses
80Paper & BoardWarehouses
157
0
50
100
150
200
2003 2005 Target
157
102
60
Number of Paper & Board Warehouses
Regional distribution centers will reduce warehousing and transportation costs and improve customer service– Significantly reduce number of IP warehouses in the U.S.– Consolidate IP products in central locations
Warehouses by Business
3131
$120 mm
Adding $120 million per year from higher sales volumes and improved mix is achievable
Adding $120 million per year from higher Adding $120 million per year from higher sales volumes and improved mix is achievablesales volumes and improved mix is achievable
Volume assumptions:– U.S. uncoated paper flat– Eastern European and Latin
American uncoated paper growth
– Global packaging and coated board growth
– xpedx volume growth
Volume assumptions:– U.S. uncoated paper flat– Eastern European and Latin
American uncoated paper growth
– Global packaging and coated board growth
– xpedx volume growth
Profit Improvement InitiativesProfit Improvement InitiativesHigher sales volumes / mixHigher sales volumes / mix
3232
Taking $80 million per year of overhead costs out of a $3.1 billion cost base will happen
Taking $80 million per year of overhead costs Taking $80 million per year of overhead costs out of a $3.1 billion cost base will happenout of a $3.1 billion cost base will happen
$80 mm
OngoingBusiness
S&A
OngoingBusiness
S&A
Annual Profit Improvement Target
Total Overhead Costs$3.1 Billion
OngoingShared Costs
OngoingShared Costs
DivestedBusiness
S&A
S&AReduction
Profit Improvement InitiativesProfit Improvement InitiativesStreamlining the organizationStreamlining the organization
3333
Reduced overhead costs by $700 million 2000 - 2004Reduced overhead costs by $700 million 2000 Reduced overhead costs by $700 million 2000 -- 20042004
0
1
2
3
4
2000
3.8
3.1
$ Billions
2004
Streamlining the OrganizationStreamlining the OrganizationReducing overhead costsReducing overhead costs
S&A Manufacturing Administrative
3434
ImproveKey PlatformBusinesses
DivestAssetsDivestAssets
Use ofProceeds
TransformingPlan
Key Components of PlanKey Components of PlanDivest assetsDivest assets
FocusPortfolio onKey PlatformBusinesses
3535
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q2005 2006 2007
CHH
Arizona Chemical
Selected forestlands and related wood products business
Beverage Packaging (incl. Pine Bluff mill)
Kraft Papers (incl. Roanoke Rapids mill)
Coated & SC Papers (incl. Inpacel mill)
Expect to complete Expect to complete divestments in one year divestments in one year
except for forest products except for forest products assets which could take assets which could take
longer to completelonger to complete
Divestiture TimelineDivestiture Timeline
3636
Carter HoltHarvey
Coated & SC
Forestlands
Beverage Packaging
Wood Products
ArizonaChemical
Kraft Paper
Consider StrategicOptions
Distribute SalesBook
ReceiveBids
SalesAgreementAnnounced
Closeon
Sale
Divestiture Program Divestiture Program Status as of Dec. 1, 2005Status as of Dec. 1, 2005
- Phase completed
3737
ImproveKey PlatformBusinesses
DivestAssets
Use ofProceeds
Use ofProceeds
TransformingPlan
Key Components of PlanKey Components of PlanUse of proceedsUse of proceeds
FocusPortfolio onKey PlatformBusinesses
3838
Use of ProceedsUse of Proceeds
Use of after-tax proceeds ($8-10 billion)– Debt repayment
– Return value to shareholders
– Selective reinvestment
3939
0
4
8
12
16
20
2000June
18
12
$ BillionsReduced gross debt by over $6 billion since June 2000
Reduced gross debt by over Reduced gross debt by over $6 billion since June 2000 $6 billion since June 2000
June 2000 includes Carter Holt Harvey debt on IP’s balance sheet
Debt RepaymentDebt Repayment
2005September
Solidify investment grade credit rating Solidify investment grade credit rating
4040
Return Value to ShareholdersReturn Value to Shareholders
Portion of after-tax proceeds will be used to return value to shareholders
Potential options include:• Share repurchases
• Increase regular dividend (if sustainable)
• Special dividend
4141
Selective Reinvestment Selective Reinvestment
Latin America– Build out low cost, good return uncoated papers / pulp
platform in Brazil
China– Coated board / packaging & paper opportunities
Eastern Europe / Russia– Further expansion at Svetogorsk– Paper and packaging options in Russia
Europe (East & Mediterranean) – Bolt-on corrugated opportunities
4242
Earnings Improvement Summary*Earnings Improvement Summary*
Base Case 2005
ImproveExisting
Businesses
Earnings fromDivested
Businesses
Earnings fromSelect
Reinvestment
Interest Savings
Value toShareholders
Future Case2008
EPS
* Component symbols used for illustrative purposes only, proportions not indicative of actual EPS impact.
Execution of the transformation strategywill improve IP’s earnings in four ways
Execution of the transformation strategyExecution of the transformation strategywill improve IP’s earnings in four wayswill improve IP’s earnings in four ways
4343
SummarySummary
Value was not created by the transformation announcement alone – value will be created
by successfully executing the strategy
Value was not created by the transformation Value was not created by the transformation announcement alone announcement alone –– value will be created value will be created
by successfully executing the strategyby successfully executing the strategy
The ultimate measure of the success of the transformation will be increased earnings power
and better returns for the entire company
The ultimate measure of the success of the The ultimate measure of the success of the transformation will be increased earnings power transformation will be increased earnings power
and better returns for the entire company and better returns for the entire company
Balancing the length of time required to divest assets with maximizing shareholder value
Balancing the length of time required to divest Balancing the length of time required to divest assets with maximizing shareholder value assets with maximizing shareholder value
This is not a bigger is better strategy – not driven to be a certain size company
This is not a bigger is better strategy This is not a bigger is better strategy –– not not driven to be a certain size companydriven to be a certain size company
4444
4545
Appendix
4646
Transformation OverviewTransformation Overview
Focus on Key Platform Businesses
Uncoated Papers, Global Packaging, Global
Focus on Key Platform Businesses
Uncoated Papers, Global Packaging, Global
Improve ProfitabilityOngoing improvement initiativesReduce cost baseRealign U.S. mills
Improve ProfitabilityOngoing improvement initiativesReduce cost baseRealign U.S. mills
Evaluate/Divest Selected Assets50.5% stake in Carter Holt Harvey(Sold Sept. 2005)Coated PapersBeverage Pkg. Kraft PapersArizona Chemical U.S. Forestlands –(selected)Wood Products
Evaluate/Divest Selected Assets50.5% stake in Carter Holt Harvey(Sold Sept. 2005)Coated PapersBeverage Pkg. Kraft PapersArizona Chemical U.S. Forestlands –(selected)Wood Products
Use Divestment Proceeds and Free
Cash Flow to Improve Business
Improve balance sheet – repay debtReturn value to shareownersConsider selective investments in best assets / new opportunities
Use Divestment Proceeds and Free
Cash Flow to Improve Business
Improve balance sheet – repay debtReturn value to shareownersConsider selective investments in best assets / new opportunities
4747
9M’05 vs. 9M’04 Results9M’05 vs. 9M’04 Results
15.115.111.611.6Gross Debt ($ billion)Gross Debt ($ billion)
(204)(204)1,1771,177Net Earnings (Loss) as Reported ($ million)Net Earnings (Loss) as Reported ($ million)
(0.42)(0.42)2.362.36Diluted EPS ($)Diluted EPS ($)
25.125.125.025.0Average Capital Employed ($ billion)Average Capital Employed ($ billion)
488.2488.2507.5507.5Average Shares Outstanding (million)Average Shares Outstanding (million)
0.840.840.960.96Diluted EPS From Continuing Operations and Diluted EPS From Continuing Operations and Before Special Items ($)Before Special Items ($)
413413466466Earnings From Continuing Operations and Before Earnings From Continuing Operations and Before Special Items ($ million)Special Items ($ million)
17.317.318.018.0Sales ($ billion)Sales ($ billion)
9 Months EndedSeptember 302005 2004
Selected financialsSelected financials
4848
9M’05 vs. 9M’04 Results9M’05 vs. 9M’04 Results
(175)
(150)
(125)
(100)
(75)
(50)
(25)
0
(150)
(125)
(100)
(75)
(50)
(25)
0
CausticSoda
Energy Other
EBIT ($MM)
(130)
(146)
(40)
(71)
WoodFiber
Container-board
BleachedBoard
EBIT ($MM)
(50)
(135)
(6)
UncoatedPapers
$387 million or $0.57/shareimpact in 9M’05 versus 9M’04 $387 million or $0.57/share$387 million or $0.57/share
impact in 9M’05 versus 9M’04 impact in 9M’05 versus 9M’04 $191 million or $0.28/share
impact in 9M’05 versus 9M’04 $191 million or $0.28/share$191 million or $0.28/share
impact in 9M’05 versus 9M’04 impact in 9M’05 versus 9M’04
EBIT impact from input costs & LOO downtimeEBIT impact from input costs & LOO downtime
Input Costs Lack-of-Order Downtime
4949
Source: FBA, U.S. Department of Commerce, IP Analysis
2004 GDP: $10.8 Trillion of 2000 Dollars
2004 Box Shipments:$23.2 Billion Dollars
Value $Volume
U.S. Industrial PackagingU.S. Industrial Packaging
GoodsGoodsServices
Investments
Mining / Utilities
Durables
Non-Durables
GDP Industrial Production Box Shipment
22%
$ 6 Trillion$ 3.8 Trillion$ 3.8 Trillion
$1Trillion
43%
34%82%
18%
Source of corrugated box demandSource of corrugated box demand
Over 80% of box demand comes from non-durablesOver 80% of box demand comes from nonOver 80% of box demand comes from non--durablesdurables
5050
Source: FBA, Federal Reserve, IP Analysis
Box shipments relate closely with non-durables manufacturingBox shipments relate closely with nonBox shipments relate closely with non--durables manufacturingdurables manufacturing
U.S. Industrial PackagingU.S. Industrial Packaging
Index (1997 = 100)
405060708090
100110120130140150
1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004
Box Shipments Non-Durables Durables
Industrial production & box shipmentsIndustrial production & box shipments
5151
U.S. Forestlands U.S. Forestlands
Total IP Forestlands6.8 MM acres
Total IP Forestlands6.8 MM acres
Core Holdings5.3 MM acres
Core Holdings5.3 MM acres
Southeast Timber1.1 MM acres
Southeast Timber1.1 MM acres
Long-Term Leases0.4 MM acres
Long-Term Leases0.4 MM acres
IP acreage included in aconsolidated subsidiary
selling IP forestlands on aretail basis in the U.S. South
IP acreage included in estimated after-tax
proceeds from selected assets valuation of $8-10B
Selected acreage in proceeds estimatesSelected acreage in proceeds estimates
As part of the transformation plan, IP is pursuing As part of the transformation plan, IP is pursuing strategic options for part or all of its U.S. forestlands strategic options for part or all of its U.S. forestlands