International paper to sell off subsidiaries

International Paper has announced a three-part transformation plan that it hopes will improve returns, strengthen the balance sheet and return cash to shareowners. International Paper will make portfolio changes to concentrate on two key platform businesses:
 Uncoated Papers
 Industrial and Consumer Packaging
"We already have a strong global position in uncoated paper and have a growing worldwide platform in packaging. Our portfolio changes will allow us to better focus management attention and financial resources on these key businesses, which represent over 70 percent of our sales, and can achieve both cost-of-capital returns and profitable growth," said Chairman and Chief Executive Officer John Faraci.
To focus on the two key platform businesses, IP will evaluate strategic options for other businesses - including the potential sale or spin-off of:
 IP's 50.5 percent stake in Carter Holt Harvey (as previously announced)
 The Coated and Supercalendered (SC) Papers Business, including the coated groundwood mill and associated assets in Parana, Brazil
 The Beverage Packaging Business, including the Pine Bluff, Ark., mill
 The Kraft Papers Business, including the Roanoke Rapids, N.C., mill
 Arizona Chemical
 Segments or potentially all of its 6.8 million acres of U.S. forestlands
 The Wood Products Business
"Considering our desire to develop strong businesses that can compete and grow globally, we have made choices about which businesses to focus our management and financial resources," Faraci said. "The businesses being evaluated for potential sale or spin-off are good businesses that may be better positioned with different ownership."
These businesses represent approximately 30 percent of 2004 sales (including intercompany sales) and $925 million, or 40 percent, of operating profits. The company expects the evaluation of these businesses to be complete by the first quarter of 2006. IP will continue to operate the businesses to meet the needs of customers and generate earnings for shareowners.