International Paper reports that net sales for the quarter were $5.2 billion, versus $5.3 billion in the fourth quarter of 2006 and $5.5 billion in the first quarter of 2006.

First-quarter 2007 segment operating profits and business trends compared with the fourth quarter of 2007 are as follows:

- Industrial Packaging operating profits were $103 million, compared with $130 million in the prior quarter. The decrease was principally due to a change in accounting treatment for planned mill maintenance outages in the first quarter. Box volumes were slow early in the quarter, with substantial pick-up in March. Strong manufacturing performance offset most of the impact from higher fiber costs through the quarter. The European container business had record first-quarter earnings thanks to better volumes, higher prices and strong manufacturing operations.
- Consumer Packaging operating profits were $61 million in the first quarter, up from $27 million in the 2006 fourth quarter, due to higher earnings in U.S. and European coated paperboard and foodservice businesses, as well as contributions from the IP-Sun Paper joint venture in China. The foodservice business had its best quarter in eight years with strength in volumes, price and cost control. Higher earnings in the U.S. business reflect, in part, the change in accounting treatment for planned mill maintenance outages. Shorewood Packaging is seasonally slow in the first quarter, but posted better results due to the absence of a one-time non-cash charge that impacted fourth-quarter results.
- The company's distribution business, xpedx, reported record first-quarter operating profits of $29 million compared with operating profits in the prior quarter of $31 million. Sales revenues were slightly down versus the fourth quarter of 2006 because of seasonal slowdowns in volumes.

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