International Paper CEO: We’re Seeing Good Growth
Despite the macro environment and EU debt crisis, International Paper is still seeing its business grow, Chairman and CEO John Faraci told “Mad Money” host Jim Cramer Tuesday.
“Near term, it’s more of the same. It’s going sideways … in the developed markets, “but we still see good growth in Latin America, Russia, [and] China," he said. We’ve got lots of programs … that that are independent of the macro environment where we can improve our earnings and improve our cost conditions around the world.”
Faraci told Cramer he’s pleased the footprint the company has in Brazil, Russia, China and India, where IP just acquired Andhra International Paper. And he said business is also growing in North America, thanks to its consolidation of warehouses and its pending acquisition of Temple-Inland.
“We’re making a lot of money now in the container board business and the Temple acquisition really enables us to take what‘s a good business and turn it into an excellent one,” he said.
The reason is a simple one, he said—International Paper will get a lot of merger benefits.
“This is all about taking costs out of two good companies and it’s a unique opportunity for us. Temple can’t do it on their own, we can’t do it on our own but combined we can take a lot of cost out and make the business much more successful.”
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