::The Center for Paper Business and Industry Studies::

061218 Deutsche Bank Report - Dr. Paper's Weekly Wrap Up (1/5/07)

Deutsche Bank - Equity Research

International Paper completed the sale of its Kraft Papers business to Stone Arcade for $155MM, plus contingent payments of up to $60MM payable in 5 years. '06 EBIT was $25MM plus D&A of about $17MM (the '04 number).

Unusually balmy East Coast weather this week helped boost plywood consumption and prices by $10-11/msf wk/wk. However, OSB failed to enjoy the same boost, as the OSB composite price fell $2/msf wk/wk.

Some positive data points in containerboard: The ISM rebounded to 51.4 in Dec., up from 49.5 in Nov, and some contacts suggest that seasonal slowdown not as severe as expected. We're encouraged, but still think that some caution is warranted about the Jan. $40/ton price hike initiative.