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Stock impact report

Recession warning seen in demand for cardboard boxes [Yahoo! Finance]

International Paper Company (IP) 
Last international paper company earnings: 4/30 07:00 am Check Earnings Report
US:NYSE Investor Relations: internationalpaper.com/performance
Company Research Source: Yahoo! Finance
While this might look like routine cost-cutting in a tired industrial sector, it may actually be a warning light for the broader economy. The cardboard box industry has long served as a barometer to measure real-world demand. Everything from big appliances to frozen pizzas is shipped in these boxes. When factories ramp up and businesses expect higher sales, they order more boxes. If they think demand is falling, box orders go down. The current situation is increasingly concerning. U.S. containerboard production capacity has fallen by about 9% in just eight months — a decline double the rate experienced during the 2009 recession. International Paper reported that U.S. box shipments fell year-on-year in the second quarter, marking its fourth consecutive quarterly decline. Similarly, Smurfit Westrock saw a slide in North American corrugated cardboard volumes. Trade tariffs are also part of the equation. Analysts at Barclays estimate that 10% to 15% of American containerboard capaci Show less Read more
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