Memphis, Tennessee, USA, 02 March 2009 -- /PRNewswire/ -- International Paper (NYSE: IP) announced today that its board of directors has reduced the company's quarterly common stock dividend from USD 0.25 per share to USD 0.025 per share, effective for the dividend payable 15 June 2009, to shareholders of record on 18 May 2009. This reduction will allow the company to preserve approximately USD 100 million in cash on a quarterly basis, which will be used to reduce debt more quickly.
"While our cash balances and cash flows remain solid, we believe it is prudent to manage cash conservatively in this uncertain economic environment," said John Faraci, chairman and CEO. "This decision, which reflects our strong commitment to maintaining our current credit ratings, is a proactive step to maximize our financial flexibility, along with our earlier decisions to reduce capital investment, decrease overhead spending and headcount, and freeze salaries."
The company declared a regular quarterly dividend of USD 0.025 per share for the period from 01 April 2009 to 30 June 2009, inclusive, on its common stock, par value USD 1.00. This dividend is payable on 15 June 2009, to holders of record at the close of business on 18 May 2009. The company also declared a regular quarterly dividend of USD 1.00 per share for the period from 01 April 2009 to 30 June 2009, inclusive, on the cumulative USD 4.00 preferred stock of the company. This dividend is also payable on 15 June 2009, to holders of record at the close of business on 18 May 2009.
International Paper (NYSE: IP) is a global paper and packaging company with manufacturing operations in North America, Europe, Latin America, Russia, Asia, and North Africa. Its businesses include uncoated papers and industrial and consumer packaging, complemented by xpedx, the company's North American distribution company. Headquartered in Memphis, Tennessee, the company employs more than 61,500 people in more than 20 countries and serves customers worldwide. Net sales during 2008 were approximately USD 25 billion. For more information about International Paper, its products, and stewardship efforts, visit internationalpaper.com.