International Paper Increases Cash Dividend 14% to $1.60 per share

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Sep 09, 2014, 04:01 ET

MEMPHIS, Tenn., Sept. 9, 2014 /PRNewswire/ -- International Paper's (NYSE: IP) board of directors today increased the company's quarterly dividend by 14% from $.35 to $0.40 per share for the period from October 1, 2014, to December 31, 2014, inclusive, on its common stock, par value $1.00. This dividend is payable on December 15, 2014, to holders of record at the close of business on November 17, 2014.

"This dividend increase, our third consecutive double-digit increase in as many years, demonstrates the value we place on returning a significant portion of our cash to shareholders," said John Faraci, Chairman and Chief Executive Officer. "International Paper remains highly confident in our ability to continue to generate strong, sustainable free cash flow and we are committed to using that cash to maximize value for our shareholders."

Additionally, the company also declared a regular quarterly dividend of $1.00 per share for the period from October 1, 2014, to December 31, 2014, inclusive, on the cumulative $4.00 preferred stock of the company. This dividend is also payable on December 15, 2014, to holders of record at the close of business on November 17, 2014.

Certain statements in this press release may be considered 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 include but are not limited to: (i) the level of our indebtedness and increases in interest rates; (ii) industry conditions, including but not limited to changes in the cost or availability of raw materials, energy and transportation costs, competition we face, cyclicality and changes in consumer preferences, demand and pricing for our products; (iii) global economic conditions and political changes, including but not limited to the impairment of financial institutions, changes in currency exchange rates, credit ratings issued by recognized credit rating organizations, the amount of our future pension funding obligation, changes in tax laws and pension and health care costs; (iv) unanticipated expenditures related to the cost of compliance with existing and new environmental and other governmental regulations and to actual or potential litigation; (v) whether we experience a material disruption at one of our manufacturing facilities; (vi) risks inherent in conducting business through joint ventures; and (vii) our ability to achieve the benefits we expect from all strategic acquisitions, divestitures and restructurings. 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. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.

About International Paper
International Paper (NYSE: IP) is a global leader in packaging and paper with manufacturing operations in North America, Europe, Latin America, Russia, Asia and North Africa. Its businesses include industrial and consumer packaging and uncoated papers. Headquartered in Memphis, Tenn., the company employs approximately 65,000 people and is strategically located in more than 24 countries serving customers worldwide. International Paper net sales for 2013 were $29 billion. For more information about International Paper, its products and stewardship efforts, visit internationalpaper.com.

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SOURCE International Paper