But projections that paper would keep earnings growing well into 2001 are pulp fiction. Earnings at International Paper Inc., Purchase, N.Y., plunged to 5 cents a share from 60 cents a year ago. But all five companies in the group warned investors of declining pulp prices in recent earnings announcements. There is still downside risk, particularly for companies that are highly leveraged to pulp and paper. Others in the industry are following suit, say insiders, although official announcements are muted.
Pulp is the stuff created in the manufacturing stages between wood chips and finished paper.
U.S. paper manufacturers produce pulp for themselves and for sale on the open market, where European paper companies are the largest buyers. Paper egg cartons are the closest that consumers come to the coarse sheets of pulp manufacturers trade by the shipload then grind and mix with water to produce paper. E-mail this story to a friend. Format this story for printing. Save at local area businesses.