International Paper Reports First-Quarter 2013 Earnings

           International Paper Reports First-Quarter 2013 Earnings

Strong Industrial Packaging Results

Temple-Inland Integration Synergies Top $400 Million Run Rate

Unfavorable FX Swing of $17 Million ($0.04 per share) at Ilim JV Compared to
4Q12

PR Newswire

MEMPHIS, Tenn., May 2, 2013

MEMPHIS, Tenn., May 2, 2013 /PRNewswire/ --International Paper today reported
first quarter 2013 net earnings attributable to common shareholders totaling
$318 million ($0.71 per share), compared with net earnings of $235 million
($0.53 per share) in the fourth quarter of 2012 and $188 million ($0.43 per
share) in the first quarter of 2012. Amounts in all periods include the impact
of special items, non-operating pension expense and discontinued operations.


(Logo: http://photos.prnewswire.com/prnh/20020701/IPLOGO)

Diluted Earnings Per Share Attributable to International Paper Shareholders

                                                  Fourth
                                          First           First
                                          Quarter Quarter Quarter
                                          2013            2012
                                                  2012
Net Earnings                              $0.71   $0.53   $0.43
Less – Discontinued Operations Gain       (0.06)  (0.02)  (0.01)
Net Earnings from Continuing Operations   $0.65   $0.51   $0.42
Add Back – Net Special Items Expense^1 (0.11)  0.11    0.15
Add Back – Non-Operating Pension Expense  0.11    0.07    0.06
Operating Earnings^2                      $0.65   $0.69   $0.63

^1 (Income)
^2  Operating Earnings is defined as net earnings from continuing operations
    (GAAP) excluding special items and non-operating pension expense.

Operating Earnings were $292 million ($0.65 per share) in the first quarter of
2013, compared with $305 million ($0.69 per share) in the fourth quarter of
2012 and $272 million ($0.63 per share) in the first quarter of 2012.

Quarterly net sales were $7.1 billion compared with $7.1 billion in the fourth
quarter of 2012 and $6.7 billion in the first quarter of 2012.

Business segment operating profits before special items in the first quarter
of 2013 were $571 million, compared with $565 million in the fourth quarter of
2012 and $538 million in the first quarter of 2012.

"Industrial Packaging posted solid results driven by improved pricing and
synergies, however, the company's overall performance in the quarter was muted
by seasonally slow demand across our global operations, weak earnings from
xpedx and an unfavorable foreign exchange swing at Ilim," said John Faraci,
Chairman and Chief Executive Officer. "Looking ahead, peak annual maintenance
outage spending and expansion project ramp-up costs at Ilim will impact the
second quarter. Earnings runway from our strategic projects and announced
pricing initiatives will position the company to deliver step-change financial
performance in the second half of 2013, regardless of what looks to be a
continued slow and uneven global economy."

SEGMENT INFORMATION
The performance of the company's business segments are measured quarter to
quarter without variations caused by special items, as management focuses on
business segment operating profits excluding those items. First quarter 2013
business segment operating profits and business trends compared with the prior
quarter are as follows:

Industrial Packaging posted operating profits of $369 million ($355 million
including special items) in the first quarter of 2013, compared to $368
million ($336 million including special items) in the fourth quarter of 2012.
In North America, higher selling prices for boxes and containerboard were
partially offset by seasonally slow demand, higher input costs and $16 million
in incremental scheduled outage expenses. First quarter segment results
include consolidated earnings for Orsa International Paper Embalagens S.A. for
the period January 15 through February 28, 2013.

Printing Papers' operating profits were $149 million (before and after special
items) compared to $147 million (before and after special items) in the fourth
quarter of 2012. Lower scheduled maintenance outage expenses in North America
and improved operating costs primarily related to the new biomass boiler in
Brazil were partially offset by seasonally slow demand, increased export mix
and modestly lower North American selling prices. 

Consumer Packaging operating profit was $51 million ($7 million including
special items), compared with $39 million ($41 million including special
items) in the fourth quarter of 2012. Lower scheduled maintenance expenses in
North America were partially offset by higher operating costs primarily
related to an unplanned reliability issue in January on the digester at the
Augusta, GA coated paperboard mill.

xpedx, the company's North American distribution business, reported operating
profits of $2 million (a loss of $5 million including special items), compared
with $11 million ($4 million including special items) in the fourth quarter of
2012. Seasonally slow demand, weaker margins and declining commercial
printing and publishing volumes impacted earnings in the quarter.

International Paper recorded Ilim Joint Venture equity losses of $11 million,
compared with equity earnings of $8 million in the fourth quarter of 2012.
Based on a stronger dollar versus the ruble, the after-tax impact of a
foreign exchange loss in the first quarter of 2013 was $11 million unfavorable
compared with a foreign exchange gain of $6 million in the fourth quarter of
2012. The impact in both quarters was due to non-cash adjustments associated
with the Ilim Group joint venture's U.S. dollar-denominated debt.

Net corporate expenses for the 2013 first quarter were $22 million compared
with $15 million in the fourth quarter of 2012 and $32 million in the first
quarter of 2012.

Effective Tax Rate
The effective tax rate before special items and non-operating pension expense
for the first quarter of 2013 was 21 percent, compared with an effective tax
rate before special items of 22 percent in the fourth quarter of 2012. The
first quarter rate of 21 percent includes a benefit of approximately $35
million related to the enactment into law of The American Taxpayer Relief Act
of 2012 on January 2, 2013 (the "Act"). The Act retroactively restored several
expired business tax provisions including the research and experimentation
credit and the Subpart F controlled foreign corporation look-through
exception. The 2012 fourth quarter rate of 22 percent included a $29 million
valuation allowance release previously imposed on state income tax attributes.

Effects of Special Items
Special items in the first quarter of 2013 included pre-tax charges of $59
million ($36 million after taxes) for restructuring and other charges and
pre-tax charges of $12 million ($8 million after taxes) for integration costs
related to the Temple-Inland acquisition. Also included are pre-tax interest
income of $6 million ($4 million after taxes) and a tax benefit of $93
million both associated with the closing of a U.S. federal income tax audit
and a net tax expense of $2 million related to internal restructurings.
Restructuring and other charges included pre-tax charges of $44 million ($27
million after taxes) for costs related to the permanent shutdown of a paper
machine at our Augusta, Georgia mill, pre-tax charges of $6 million ($4
million after taxes) for debt extinguishment costs, pre-tax charges of $7
million ($4 million after taxes) for costs associated with the restructuring
of our xpedx operations and pre-tax charges of $2 million ($1 million after
taxes) for other items.

Special items in the fourth quarter of 2012 included pre-tax charges of $21
million ($14 million after taxes) for restructuring and other charges, pre-tax
charges of $28 million ($19 million after taxes) for integration costs related
to the Temple-Inland acquisition, and a gain of $3 million (before and after
taxes) for other items. Also included are a net tax expense of $14 million
related to internal restructurings and a tax expense of $5 million to adjust
deferred tax assets related to post-retirement prescription drug coverage
(Medicare Part D reimbursements). Restructuring and other charges included
pre-tax charges of $9 million ($6 million after taxes) for debt extinguishment
costs, pre-tax charges of $7 million ($4 million after taxes) for costs
associated with the restructuring of our xpedx operations, and pre-tax charges
of $5 million ($4 million after taxes) for other items.

Special items in the first quarter of 2012 included pre-tax charges of $34
million ($23 million after taxes) for restructuring and other charges, a
pre-tax charge of $20 million ($12 million after taxes) related to the
write-up of the Temple-Inland inventories to fair value, pre-tax charges of
$43 million ($33 million after taxes) for integration costs related to the
Temple-Inland acquisition and a net pre-tax gain of $5 million ($4 million
after taxes) for other items. Restructuring and other charges included pre-tax
charges of $16 million ($10 million after taxes) for debt extinguishment
costs, pre-tax charges of $19 million ($14 million after taxes) for costs
associated with the restructuring of our xpedx operations and a gain of $1
million (before and after taxes) for other items.

Discontinued Operations
Discontinued operations in the first quarter of 2013 and in the fourth and
first quarters of 2012 included the Operating Earnings of Temple-Inland's
Building Products business. Also included are pre-tax charges of $4 million
($3 million after taxes) in the first quarter of 2013 and $13 million ($8
million after taxes) in the fourth quarter of 2012 for expenses associated
with pursuing the divestiture of this business.

EARNINGS WEBCAST
The company will hold a webcast to review earnings at 9:00 a.m. EDT / 8:00
a.m. CDT today. All interested parties are invited to listen to the webcast
live and view the slides to be presented at the webcast via the company's
Internet site at http://www.internationalpaper.com by clicking on the
Investors tab and going to the Presentations page. A replay of the webcast
will also be available beginning approximately two hours after the call.
Parties in the U.S. who wish to participate in the webcast via teleconference
may dial (877) 316-2541. Those outside the U.S. should dial +1 (706) 679-8242
and ask to be connected to the International Paper First Quarter Earnings
Call. The conference ID number is 31276000. Participants should call in no
later than 8:45 a.m. ET/7:45 a.m. CT. An audio-only replay will be available
for four weeks following the call. To access the replay, dial +1 (404)
537-3406 or, within the U.S. only, (855) 859-2056, and when prompted for the
conference ID, enter 31276000.

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, complemented by xpedx, the company's North American
distribution company. Headquartered in Memphis, Tenn., the company employs
approximately 70,000 people and is strategically located in more than 24
countries serving customers worldwide. International Paper net sales for 2012
were $28 billion. For more information about International Paper, its
products and stewardship efforts, visit internationalpaper.com.

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 a joint
venture; (vii) our ability to reach a definitive agreement on a mutually
acceptable transaction combining xpedx with Unisource, the receipt of
governmental and other approvals and favorable rulings associated with such a
transaction and the successful fulfillment or waiver of all other closing
conditions for such a transaction without unexpected delays or conditions, and
the successful closing of such a transaction within the estimated timeframe;
and (viii) 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.



INTERNATIONAL PAPER COMPANY
Consolidated Statement of Operations
Preliminary and Unaudited
(In millions, except per share amounts)
                              Three Months Ended            Three Months
                                                            Ended
                              March 31,                     December 31,
                              2013           2012           2012
Net Sales                     $             $             $   
                              7,090         6,655          7,075
Costs and Expenses
 Cost of products sold       5,220          4,984  (e)    5,193
 Selling and administrative  567     (a)   513    (f)    578        (i)
expenses
 Depreciation, amortization  379            362            375
and cost of timber harvested
 Distribution expenses       422            347            413
 Taxes other than payroll    49             41             42
and income taxes
 Restructuring and other     59      (b)   34     (g)    21         (j)
charges
 Net (gains) losses on sales -              (7)    (h)    (3)        (k)
and impairments of businesses
 Interest expense, net       164     (c)   168            169
Earnings From Continuing
Operations Before Income
Taxes and
 Equity Earnings             230     (a-c) 213    (e-h)  287        (i-k)
 Income tax (benefit)        (69)    (d)   70             74         (l)
provision
 Equity earnings (loss), net (10)           44             9
of taxes
Earnings From Continuing      289     (a-d) 187    (e-h)  222        (i-l)
Operations
 Discontinued operations,    26             5              10
net of taxes
Net Earnings                 $    (a-d) $    (e-h)  $      (i-l)
                              315            192            232
 Less: Net earnings (loss)
attributable to               (3)            4              (3)
noncontrolling interests
Net Earnings Attributable to  $    (a-d) $    (e-h)  $      (i-l)
International Paper Company   318            188            235
Basic Earnings Per Common
Share Attributable to
 International Paper Common
Shareholders
 Earnings from continuing    $     (a-d) $    (e-h)  $      (i-l)
operations                    0.66          0.42           0.52
 Discontinued operations     0.06           0.01           0.02
 Net earnings                $     (a-d) $    (e-h)  $      (i-l)
                              0.72          0.43           0.54
Diluted Earnings Per Common
Share Attributable to
 International Paper Common
Shareholders
 Earnings from continuing    $     (a-d) $    (e-h)  $      (i-l)
operations                    0.65          0.42           0.51
 Discontinued operations     0.06           0.01           0.02
 Net earnings               $     (a-d) $    (e-h)  $      (i-l)
                              0.71          0.43           0.53
Average Shares of Common      446.1          438.6          441.5
Stock Outstanding - Diluted
Cash Dividends Per Common     $              $              $  
Share                         0.3000         0.2625         0.3000
Amounts Attributable to International
Paper Common Shareholders
 Earnings from continuing    $    (a-d) $    (e-h)  $      (i-l)
operations, net of tax        292            183            225
 Discontinued operations,    26             5              10
net of tax
 Net Earnings                $    (a-d) $    (e-h)  $      (i-l)
                              318            188            235

The accompanying notes are an integral part of this consolidated statement of
operations.
(a) Includes a pre-tax charge of $12 million ($8 million after taxes) for
    integration costs associated with the acquisition of Temple-Inland.
    Includes a pre-tax charge of $44 million ($27 million after taxes) for
    costs associated with the permanent shutdown of a paper machine at our
    Augusta mill, a pre-tax charge of $6 million ($4 million after taxes) for
(b) debt extinguishment costs, a pre-tax charge of $7 million ($4 million
    after taxes) for costs associated with the restructuring of our xpedx
    operations, and pre-tax charges of $2 million ($1 million after taxes) for
    other items.
(c) Includes interest income of $6 million ($4 million after taxes) related to
    the closing of a U.S. federal income tax audit.
    Includes a tax benefit of $93 million associated with the closing of a
    U.S. federal income tax audit and a net tax expense of $2 million related
(d) to internal restructurings. In addition, the first quarter tax rate
    includes a benefit of approximately $35 million related to the enactment
    into law of The American Taxpayer Relief Act of 2012 in January 2013.
    Includes a pre-tax charge of $20 million ($12 million after taxes) related
(e) to the write-up of the Temple-Inland inventories to fair value and a
    charge of $2 million (before and after taxes) for an inventory write-off
    related to the xpedx reorganization.
(f) Includes a pre-tax charge of $43 million ($33 million after taxes) for
    integration costs associated with the acquisition of Temple-Inland.
    Includes a pre-tax charge of $19 million ($14 million after taxes) for
    costs associated with the restructuring of the Company's xpedx operations,
(g) a pre-tax charge of $16 million ($10 million after taxes) for early debt
    extinguishment costs, and a gain of $1 million (before and after taxes)
    for other items.
(h) Includes a pre-tax gain of $7 million ($6 million after taxes) for
    adjustments related to the sale of the Shorewood business.
(i) Includes a pre-tax charge of $28 million ($19 million after taxes) for
    integration costs associated with the acquisition of Temple-Inland.
    Includes a pre-tax charge of $9 million ($6 million after taxes) for debt
    extinguishment costs, a pre-tax charge of $7 million ($4 million after
(j) taxes) for costs associated with the restructuring of our xpedx
    operations, and pre-tax charges of $5 million ($4 million after taxes)
    for other items.
    Includes a gain of $2 million (before and after taxes) for proceeds
    associated with the 2010 sale of the Arizona Chemical business, a gain of
(k) $2 million (before and after taxes) for the sale of the Company's
    Shorewood operations, and a charge of $1 million (before and after taxes)
    for costs associated with the containerboard mill divestitures.
    Includes a net expense of $14 million related to internal restructurings
(l) and a $5 million expense to adjust deferred tax assets related to
    post-retirement prescription drug coverage (Medicare Part D
    reimbursements).



International Paper Company
Reconciliation of Operating Earnings to Net Earnings
Attributable to International Paper Company
Preliminary and Unaudited
(In millions except for per share amounts)
                         Three Months Ended            Three Months
                                                       Ended
                         March 31,                     December 31,
                         2013           2012           2012
Operating Earnings       $         $          $      
                         292            272               305
Non-Operating Pension    (51)           (25)           (31)
Restructuring and other  (44)           (70)           (33)
charges
Net gains/(losses) on
sales/impairments of     -              6              3
businesses
Interest income          4              -              -
Income tax adjustments   91             -              (19)
Earnings from Continuing 292            183            225
Operations
Discontinued operations  26             5              10
Net Earnings as Reported $         $          $      
                         318            188               235
                         Three Months Ended            Three Months
                                                       Ended
                         March 31,                     December 31,
Diluted Earnings per     2013           2012           2012
Common Share
Operating Earnings Per   $          $           $      
Share                    0.65          0.63            0.69
Non-Operating Pension    (0.11)         (0.06)         (0.07)
Restructuring and other  (0.10)         (0.16)         (0.08)
charges
Net gains/(losses) on
sales/impairments of     -              0.01           0.01
businesses
Interest income          0.01           -              -
Income tax adjustments   0.20           -              (0.04)
Diluted Earnings Per
Common Share from
 Continuing Operations  0.65           0.42           0.51
Discontinued operations  0.06           0.01           0.02
Diluted Earnings per     $          $           $      
Common Share as Reported 0.71          0.43            0.53
Notes:
(1) The Company calculates Operating Earnings by excluding the after-tax
effect of non-operating pension expense and items considered by management to
be unusual from the earnings reported under U.S. generally accepted accounting
principles ("GAAP"). Management uses this measure to focus on on-going
operations, and believes that it is useful to investors because it enables
them to perform meaningful comparisons of past and present operating results.
International Paper believes that using this information, along with net
earnings, provides for a more complete analysis of the results of operations
by quarter. Net earnings is the most directly comparable GAAP measure.



International Paper
Sales and Earnings by Industry Segment
Preliminary and Unaudited
(In Millions)
    Sales by Industry
    Segment
                              Three Months                  Three
                                                            Months
                              Ended                         Ended
                              March 31,                     December
                                                            31,
                              2013           2012           2012
    Industrial Packaging   $  3,560       $  3,115        $ 3,380
    Printing Papers           1,540          1,560          1,580
    Consumer Packaging        830            810            815
    Distribution              1,385          1,475          1,530
    Corporate and             (225)          (305)          (230)
    Inter-segment Sales
    Net Sales              $  7,090       $  6,655        $ 7,075
    Operating Profit by
    Industry Segment
                              Three Months                  Three
                                                            Months
                              Ended                         Ended
                              March 31,                     December
                                                            31,
                              2013           2012           2012
    Industrial Packaging   $  355    (1)  $  215    (5)   $ 336      (5)
    Printing Papers           149            146    (6)     147
    Consumer Packaging        7      (2)     103    (7)     41       (7)
    Distribution              (5)    (3)     (2)    (8)     4        (8)
    Operating Profit          506            462            528
    Interest expense,         (164)  (4)     (168)          (169)
    net
    Noncontrolling
    interest/equity earnings  -              4              (8)
    adjustment (9)
    Corporate items, net      (22)           (32)           (15)
    Restructuring and         (6)            (16)           (11)
    other charges
    Net gains (losses)
    on sales and              -              -              2
    impairments of
    businesses
    Non-operating             (84)           (37)           (40)
    pension expense
    Earnings From
    Continuing
    Operations
     Before Income
    Taxes and Equity       $  230         $  213          $ 287
    Earnings
    Equity Earnings in
    Ilim Holdings S.A.,
     Net of Taxes       $  (11)        $  40           $ 8
    Includes a charge of $12 million for the three months ended March
(1) 31, 2013 for integration costs associated with the acquisition of
    Temple-Inland and charges of $2 million for the three months ended
    March 31, 2013 for other items.
    Includes charges of $44 million for the three months ended March 31,
(2) 2013 for costs associated with the permanent shutdown of a paper
    machine at our Augusta mill.
    Includes charges of $7 million for the three months ended March 31,
(3) 2013 for costs associated with the restructuring of the Company's
    xpedx operation.
(4) Includes a gain of $6 million for interest related to the settlement
    of an IRS tax audit.
    Includes charges of $43 million for the three months ended March 31,
    2012 and $28 million for the three months ended December 31, 2012
    for integration costs associated with the acquisition of
    Temple-Inland, a charge of $20 million for the three months ended
(5) March 31, 2012 related to the write-up of the Temple-Inland
    inventory to fair value, charges of $1 million for the three months
    ended December 31, 2012 for costs associated with the divestiture of
    three containerboard mills, and charges of $3 million for the three
    months ended December 31, 2012 for costs associated with the
    restructuring of the Company's Packaging business in Europe.
    Includes a gain of $1 million for the three months ended March 31,
(6) 2012 related to the acquisition of a majority interest in Andrha
    Pradesh Paper Mills Limited.
    Includes net gains of $7 million for the three months ended March
(7) 31, 2012 and $2 million for the three months ended December 31, 2012
    for adjustments related to the sale of the Shorewood business.
    Includes charges of $21 million for the three months ended March 31,
(8) 2012 and $7 million for the three months ended December 31, 2012 for
    costs associated with the restructuring of the Company's xpedx
    operation.
    Operating profits for industry segments include each segment's
    percentage share of the profits of subsidiaries included in that
(9) segment that are less than wholly owned. The pre-tax noncontrolling
    interest and equity earnings for these subsidiaries are adjusted
    here to present consolidated earnings before income taxes and equity
    earnings.



International Paper Company
Reconciliation of Operating Profit to Operating Profit Before Special Items
(In millions)
                       Three Months Ended March 31, 2013
                       Industrial  Printing   Consumer
                       Packaging   Papers     Packaging   Distribution  Total
Operating Profit       $       $      $      $       $  
Before Special Items   369         149        51          2             
                                                                        571
Restructuring and      (14)        -          (44)        (7)           (65)
other charges
Operating Profit as    $       $      $      $        $  
Reported               355         149         7        (5)           
                                                                        506
                       Three Months Ended March 31, 2012
                       Industrial  Printing   Consumer
                       Packaging   Papers     Packaging   Distribution  Total
Operating Profit       $       $      $      $        $  
Before Special Items   278         145        96          19             
                                                                        538
Restructuring and      (63)        1          -           (21)          (83)
other charges
Net gains (losses) on
sales and impairments  -           -          7           -             7
of businesses
Operating Profit as    $       $      $       $        $  
Reported               215         146        103         (2)           
                                                                        462
                       Three Months Ended December 31, 2012
                       Industrial  Printing   Consumer
                       Packaging   Papers     Packaging   Distribution  Total
Operating Profit       $       $      $      $        $  
Before Special Items   368         147        39          11             
                                                                        565
Restructuring and      (31)        -          -           (7)           (38)
other charges
Net gains (losses) on
sales and impairments  (1)         -          2           -             1
of businesses
Operating Profit as    $       $      $      $       $  
Reported               336         147        41          4             
                                                                        528
(1) The Company calculates Operating Profit Before Special Items by excluding
the pre-tax effect of items considered by management to be unusual from the
earnings reported under U.S. generally accepted accounting principles
("GAAP"). Management uses this measure to focus on on-going operations, and
believes that it is useful to investors because it enables them to perform
meaningful comparisons of past and present operating results. International
Paper believes that using this information, along with net earnings, provides
for a more complete analysis of the results of operations by quarter. Net
earnings is the most directly comparable GAAP measure.



International Paper
Sales Volume by Product (1)
Preliminary and Unaudited
International Paper Consolidated
                                             Three Months        Three
                                                                 Months
                                             Ended               Ended
                                             March 31,           December 31,
                                             2013     2012       2012
Industrial Packaging (In thousands of short
tons)
     Corrugated Packaging (2)                2,549    2,462      2,602
     Containerboard (2)                      858      749        828
     Recycling                               581      537        595
     Saturated Kraft                         40       38         36
     Gypsum/Release Kraft (2)                30       21         38
     Bleached Kraft                          31       23         29
     European Industrial Packaging (3)       339      266        262
     Asian Box                               100      98         103
     Brazilian Packaging (4)                 41       -          -
               Industrial Packaging          4,569    4,194      4,493
Printing Papers (In thousands of short tons)
     U.S. Uncoated Papers                    630      685        627
     European & Russian Uncoated Papers      329      311        338
     Brazilian Uncoated Papers               264      274        306
     Indian Uncoated Papers                  60       79         61
               Uncoated Papers               1,283    1,349      1,332
     Market Pulp (5)                         432      385        438
Consumer Packaging (In thousands of short
tons)
     North American Consumer Packaging       369      373        368
     European Coated Paperboard              91       97         94
     Asian Coated Paperboard                 360      237        340
               Consumer Packaging            820      707        802
(1) Sales volumes include third party and inter-segment sales and exclude
sales of equity investees.
(2) Includes Temple-Inland volumes from date of acquisition in
February 2012.
(3) Includes volumes for Turkish box plants beginning in Q1 2013 when a
majority ownership was acquired
(4) Includes volumes for Brazil Packaging from date of acquisition in
mid-January 2013
(5) Includes North American, European and Brazilian volumes and internal
sales to mills.



INTERNATIONAL PAPER COMPANY
Consolidated Balance Sheet
Preliminary and Unaudited
(In Millions)
                                        March 31,            December 31,
                                        2013                 2012
Assets
Current Assets
 Cash and Temporary Investments        $            $       
                                        934                  1,302
 Accounts and Notes Receivable, Net    3,869                3,562
 Inventories                           2,793                2,730
 Deferred Income Tax Assets            340                  323
 Assets held for sale                  775                  759
 Other                                 270                  229
 Total Current Assets                8,981                8,905
Plants, Properties and Equipment, Net   14,141               13,949
Forestlands                             631                  622
Investments                             810                  887
Financial Assets of Special Purpose     2,113                2,108
Entities
Goodwill                                4,527                4,315
Deferred Charges and Other Assets       1,495                1,367
Total Assets                            $      32,698  $      
                                                             32,153
Liabilities and Equity
Current Liabilities
 Notes Payable and Current Maturities
 of Long-Term Debt                    $            $        
                                        727                  444
 Liabilities held for sale             43                   44
 Accounts Payable and Accrued          4,487                4,510
Liabilities
 Total Current Liabilities           5,257                4,998
Long-Term Debt                          9,495                9,696
Nonrecourse Financial Liabilities of    2,038                2,036
Special Purpose Entities
Deferred Income Taxes                   3,105                3,026
Pension Benefit Obligation              4,117                4,112
Postretirement and Postemployment       463                  473
Benefit Obligation
Other Liabilities                       1,089                1,176
Equity
 Invested Capital                      2,934                2,642
 Retained Earnings                     3,844                3,662
 Total Shareholders' Equity          6,778                6,304
 Noncontrolling interests             356                  332
 Total Equity                        7,134                6,636
Total Liabilities and Equity            $      32,698  $      
                                                             32,153



INTERNATIONAL PAPER COMPANY
Consolidated Statement of Cash Flows
Preliminary and Unaudited
(In Millions)
                                                Three Months Ended
                                                March 31,
                                                2013            2012
Operating Activities
 Net earnings                                  $     315  $     192
 Discontinued operations, net of taxes and     (26)            (5)
noncontrolling interests
 Earnings from continuing operations           $     289  $     187
 Depreciation, amortization and cost of timber 379             362
harvested
 Deferred income tax expense (benefit), net    4               81
 Restructuring and other charges               59              34
 Net losses on sales and impairments of        -               (7)
businesses
 Equity (earnings) loss, net                   10              (44)
 Periodic pension expense, net                 140             83
 Other, net                                    (84)            3
 Changes in current assets and liabilities
 Accounts and notes receivable               (222)           113
 Inventories                                 (47)            39
 Accounts payable and accrued liabilities    16              (253)
 Interest payable                            24              68
 Other                                       (52)            (33)
Cash Provided By (Used For) Operations -        516             633
Continuing Operations
Cash Provided By (Used For) Operations -        15              (52)
Discontinued Operations
Cash Provided by (Used For) Operations          531             581
Investment Activities
 Invested in capital projects - continuing     (216)           (285)
operations
 Acquisitions, net of cash acquired            (505)           (3,734)
 Proceeds from divestitures                    -               5
 Other                                     (67)            (91)
Cash Provided By (Used For) Investment          (788)           (4,105)
Activities - Continuing Operations
Cash Provided By (Used For) Investment          (2)             (49)
Activities - Discontinued Operations
Cash Provided By (Used For) Investment          (790)           (4,154)
Activities
Financing Activities
 Repurchases of common stock and payments of   (51)            (35)
restricted stock tax withholding
 Issuance of common stock                      191             21
 Issuance of debt                              166             1,594
 Reduction of debt                             (79)            (516)
 Change in book overdrafts                     (43)            (75)
 Dividends paid                                (132)           (115)
 Redemption of preferred securities            (150)           -
 Other                                        (8)             (26)
Cash Provided By (Used for) Financing           (106)           848
Activities
Effect of Exchange Rate Changes on Cash         (3)             19
Change in Cash and Temporary Investments        (368)           (2,706)
Cash and Temporary Investments
 Beginning of the period                       1,302           3,994
 End of the period                             $     934  $    1,288



SOURCE International Paper

Website: http://www.internationalpaper.com
Contact: Media: Thomas J. Ryan, 901-419-4333; Investors: Glenn Landau,
901-419-1731 and Michele Vargas, 901-419-7287