International Paper to lay off 1,100 workers in Alabama

International Paper has downsized in Augusta.

Online applications and electronic billing have cut into demand for paper products. International Paper is laying off 1,100 workers at a Courtland, Ala., paper mill that it plans to close because of waning demand for the paper the facility makes.

International Paper has about 70,000 employees in more than 24 countries – including more than 700 at its Augusta coated paperboard mill. Once the Alabama mill closes, the business will have four paper mills remaining, in Eastover, S.C.; Riverdale, Ala.; Georgetown, S.C.; and Ticonderoga, N.Y.

The company expects the closing to result in $550 million in pretax asset write-off and accelerated depreciation charges. It expects about $125 million in pretax severance and other charges. The charges are expected to be recorded this year and in 2014.

THE STOCK

International Paper (IP)

Wednesday’s close:

$49.36 ▲ $0.09, or 0.18%

52-week range $33-$50

Annual dividend $1.40

Dividend yield 2.8%

Price-earnings ratio * 21

Total return YTD 26%

5 year ** 14%

10 year* 5%

 

Note: Total returns through Sept. 11

* Based on 12 months’ results;
** Annualized

 

Sources: FactSet, Associated Press

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