Analyst Note| Brian Bernard, CFA, CPA |
International Paper completed the spin-off of its printing paper segment on Oct. 1. This new company now trades under the name Sylvamo, ticker SLVM. Following this transaction, International Paper will primarily be a containerboard company with some fluff pulp assets. Containerboard demand has spiked in recent years due to the growth in e-commerce, but competition has grown to meet demand. It is not uncommon for aged paper assets to be converted into recycled linerboard facilities as papermakers pivot due to declining paper consumption. The increase in competition has put pressure on pricing, raising the importance of IP’s goals to cut costs and streamline the business.