Is IP's Global Cellulose Fibers segment showing recovery signs in 2024?

The Global Cellulose Fibers segment of International Paper (IP) shows signs of recovery in 2024, although the trajectory is somewhat mixed due to various economic and operational factors.

1. **Financial Performance**:
- In the first quarter of 2024, the Global Cellulose Fibers segment contributed $710 million in net sales.
- The segment saw an increase in operating profit to $40 million in the third quarter, up from $31 million in the second quarter, driven by higher average sales prices and lower planned outage costs.
2. **Market Conditions and Challenges**:
- The segment's earnings were negatively impacted by approximately $52 million due to the January freeze and the Ixtac, Mexico fire.
- Expected volume decline and higher maintenance outage expense were anticipated to decrease earnings by approximately $65 million and $44 million, respectively.
3. **Strategic Initiatives**:
- International Paper is exploring strategic options for its Global Cellulose Fibers business, indicating a potential restructuring that could positively impact the segment's future performance.
- The company's overall strategy includes investments in competitive and strategic assets, which could benefit the Global Cellulose Fibers segment in the long term.
4. **Trends and Outlook**:
- The segment is expected to see a decrease in earnings due to one less shipping day and seasonally lower demand, but also expects earnings to increase due to price and mix improvements.
- The combination with DS Smith, expected to close in the first quarter of 2025, could potentially lead to new opportunities for the Global Cellulose Fibers segment.

In conclusion, while the Global Cellulose Fibers segment of International Paper has faced challenges such as production disruptions and negative earnings impacts, it is also showing signs of recovery through improved operating profits and higher sales prices. The segment's future performance is likely to be influenced by a combination of market conditions, strategic initiatives, and external factors such as the planned combination with DS Smith.