John Faraci, in a session with analysts and investors at a UBS gathering last week, said the wettest summer since 1895 is causing the global paper company some headwinds for the third quarter.
“We’re on track in the Southeast … of having the wettest year since 1895. … That really started to happen at the end of May,” Faraci said at the Thursday, Sept. 12, event. “What that’s meant is our wood costs, particularly hardwood – they are going to rise a lot more significantly than we thought.”
It means IP will probably end up spending about $20 million to $30 million more than it anticipated. But Faraci emphasized the problem shouldn’t have lasting effects on the company.
