What caused IP's Q4 2024 earnings to drop sharply?

International Paper's (IP) Q4 2024 earnings dropped sharply due to a combination of factors: 1. **Lower Demand and Cost Inflation**: The company's earnings were impacted by lower demand for its products, especially in North America, and cost inflation. This led to a decline in sales volumes and increased costs, which adversely affected profitability. 2. **Strategic Restructuring and Mill Closures**: The company incurred significant restructuring charges and losses due to the closure of the Georgetown, S.C. pulp mill. These charges contributed to the net loss of $147 million reported for the quarter. 3. **Missed Sales Targets**: International Paper fell short of market revenue expectations, with sales flat year-on-year at $4.58 billion, missing the target of $4.76 billion. This shortfall in sales contributed to the decline in earnings. 4. **Challenging Market Environment**: The company operated in a challenging market environment, facing competitive pressures and economic uncertainties. This likely led to reduced profitability and increased costs. In summary, International Paper's Q4 2024 earnings drop was caused by a combination of lower demand, cost inflation, strategic restructuring, missed sales targets, and a challenging market environment. |code|Ticker|Name|Date|Net Income YoY|Net Income|market_code| |---|---|---|---|---|---|---| |IP|IP.N|International Paper|2024 Q1|-67.44186046511628|5.6E7|169| |IP|IP.N|International Paper|2024 Q2|111.91489361702128|4.98E8|169| |IP|IP.N|International Paper|2024 Q3|-9.090909090909092|1.5E8|169| |IP|IP.N|International Paper|2024 Q4|48.23943661971831|-1.47E8|169| |code|Ticker|Name|Date|Total Revenue YoY|Total Revenue|market_code| |---|---|---|---|---|---|---| |IP|IP.N|International Paper|2024 Q1|-7.98804780876494|4.619E9|169| |IP|IP.N|International Paper|2024 Q2|1.1106364801366937|4.734E9|169| |IP|IP.N|International Paper|2024 Q3|1.5824842835464992|4.686E9|169| |IP|IP.N|International Paper|2024 Q4|-0.45642251684416435|4.58E9|169|