US-based pulp and paper company International Paper has reportedly confirmed that it is looking at options to sell its Brazilian cardboard packaging unit.
In a statement, the company told Reuters: “It is exploring strategic options for the packaging business in Brazil, including a potential sale.”
Meanwhile, Brazilian newspaper Valor Economico reported that the potential sale is being considered as “the unit is not profitable.”
The company has also reported net sales of $5.9bn in the third quarter, compared to the net sales of $5.5bn for the same period last year.
Operating profits of the company business segments such as industrial packaging were $472m, Global Cellulose Fibers were $83m, and Printing Papers were $183m during the third quarter.
The company’s Printing Papers segment reported improved earnings in Brazil driven by seasonally stronger sales volumes and higher sales prices, as well as partially offset by higher input costs.
International Paper has also noted that a pre-tax charge of $122m related to the impairment of fixed assets and an intangible asset in its Brazil Packaging business were included in the special items of the third quarter.
Commenting on the results, International Paper chairman and CEO Mark Sutton said: “We had solid commercial performance and continued momentum across the businesses, and we continue to work aggressively to offset higher distribution and input costs.
“Looking ahead to the fourth quarter, we see continued healthy demand for our products and remain confident in our commitment to deliver strong full-year earnings growth in 2018.”