EX-99.2 3 dex992.htm SLIDES OF INTERNATIONAL PAPER COMPANY Slides of International Paper Company
Third Quarter
2008 Review
October 30, 2008
Third Quarter
2008 Review
October 30, 2008
John V. Faraci
Chairman &
Chief Executive Officer
Exhibit 99.2

2
Forward-Looking Statements
Forward-Looking Statements
These slides and statements made during this presentation contain forward-looking
statements. These statements reflect management's current views and are subject to risks
and uncertainties that could cause actual results to differ materially from those expressed
or implied in these statements. Factors which could cause actual
results to differ relate to:
(i) the company's ability to realize anticipated profit improvement from its transformation
plan, including our ability to realize the expected benefits of our acquisition of the assets of
Weyerhaeuser Company’s containerboard, packaging and recycling business in light of
integration difficulties and other challenges; (ii) increases in
interest rates and our ability to
meet our debt service obligations; (iii) industry conditions, including but not limited to
changes
in
the
cost
or
availability
of
raw
materials
and
energy,
transportation
costs,
competition we face, the company's product mix, demand and pricing for its products; (iv)
global economic conditions and political changes, including but not limited to changes in
currency exchange rates, credit availability, the company's credit ratings issued by
recognized credit rating organizations and pension and health care costs; (v) unanticipated
expenditures related to the cost of compliance with environmental and other governmental
regulations and to actual or potential litigation; and (vi) whether we experience a material
disruption at one of our manufacturing facilities. We undertake no obligation to publicly
update any forward-looking statements, whether as a result of new information, future
events
or
otherwise.
These
and
other
factors
that
could
cause
or
contribute
to
actual
results differing materially from such forward looking statements are discussed in greater
detail in the company's Securities and Exchange Commission filings.

3
Statements Relating to Non-GAAP
Financial Measures
Statements Relating to Non-GAAP
Financial Measures
During the course of this presentation, certain
non-U.S. GAAP financial information will be
presented.
A reconciliation of those numbers to U.S.
GAAP financial measures is available on the
company’s
website
at
internationalpaper.com
under Investors.

4
$0.41
$0.36
$0.16
$0.48
3Q07
3Q08
Forest Products EPS
Operating Business EPS
Third Quarter 2008 Results Summary
Solid Results Despite Cost Inflation
Third Quarter 2008 Results Summary
Solid Results Despite Cost Inflation
Input Cost Escalation
Mineral Rights Earnings
Selling Price Improvements
Soft North American &
European Demand
Initial CBPR Contributions
Reduced Operating Costs
Strong Free Cash Flow
$0.57
$0.84
Earnings from continuing operations before special items

5
.57
(.11)
(.02)
.15
.28
.01
(.02)
(.47)
.13
$0.00
$0.10
$0.20
$0.30
$0.40
$0.50
$0.60
$0.70
$0.80
$0.90
$1.00
$1.10
3Q07
Price
Volume
Cost / Mix
Materials &
Freight
Ilim
Vicksburg
Tax
Interest
3Q08
$ / Share
$ / Share
IPG        .06
CPG       .04
P&C       .14
Eu
& Br  .04
Fiber           (.08)
Chemicals   (.15)
Energy        (.16)    
Freight         (.08)
Cost / Mix    .17 
Outages      (.02)
3Q08 vs. 3Q07 EPS
Higher Prices, Volume & Mix, Unfavorable Input Costs
3Q08 vs. 3Q07 EPS
Higher Prices, Volume & Mix, Unfavorable Input Costs
.41
.16
Earnings
from
continuing
operations
before
special
items;
volume
includes
earnings
from
CBPR
Forest
Products
Earnings
.84
3Q08   33%
3Q07   29%
.48
.36

6
(96)
(89)
(53)
(48)
($120)
($100)
($80)
($60)
($40)
($20)
$0
Energy
Chemicals
Freight
Fiber
North America
Outside North America
Increasing Global Input & Freight Costs
$286MM, or $0.47/Share Impact vs. 3Q07
Increasing Global Input & Freight Costs
$286MM, or $0.47/Share Impact vs. 3Q07
Input costs for continuing businesses; does not include CBPR
Percentage change reflects estimated North American input cost increases
20%
15%
50%
50%
N.A. 

7
($200)
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
2003 vs.
2002
2004 vs.
2003
2005 vs.
2004
2006 vs.
2005
2007 vs.
2006
6M08 vs.
6M07
9M08 vs.
9M07
Cumulative
Price Increases / Decreases         
Input Cost Increases
North American Input Cost Escalation
Input Cost Inflation Exceeded Price Increases
North American Input Cost Escalation
Input Cost Inflation Exceeded Price Increases
North American Papers & Packaging; does not include CBPR

8
Printing Papers Earnings
3Q08 vs. 3Q07
Printing Papers Earnings
3Q08 vs. 3Q07
210*
241
37
15
103
(13)
(21)
(152)
$0
$50
$100
$150
$200
$250
$300
$350
3Q07
Price
Materials
& Freight
Volume
Cost / Mix
Outages
Other
3Q08
* Excludes a special impairment charge of $107 million to write down the Inverurie mill assets to estimated fair market value

9
Average IP price realization (includes the impact of mix across all grades)
$17
(€5)
$40
$101
Price / Ton
(4%)
1%
22%
(6%)
Volume
3Q08 vs. 3Q07
Price / Ton
3Q08 vs. 2Q08
3%
(5%)
5%
0%
Volume
$31
Brazilian Paper
(€8)
European Paper
($6)
N.A. Pulp
$25
N.A. Paper
Business
Printing Papers
Printing Papers

10
Industrial Packaging Earnings
3Q08 vs. 3Q07
Industrial Packaging Earnings
3Q08 vs. 3Q07
1
Excludes trade volume and includes CBPR earnings
2
Excludes special charges of $39 million related to the write-up of inventory to fair value in connection with the CBPR
acquisition and $19 million for CBPR integration costs
84
153
2
47
5
64
1
37
5
(9)
(80)
$0
$25
$50
$75
$100
$125
$150
$175
3Q07
Price
Materials
& Freight
Volume
Cost / Mix
Outages
Vicksburg
Other
3Q08

11
€42
$72
$45
Price / Ton
(5%)
(1%)
0%
Volume
3Q08 vs. 3Q07
€23
(9%)
European Container
3Q08 vs. 2Q08
(1%)
(6%)
Volume
$13
N.A. Container
$11
N.A. Containerboard
Price / Ton
Business
Industrial Packaging
Industrial Packaging
Volume and price exclude CBPR
Average IP price realization (includes the impact of mix across all grades)

12
27
6*
(53)
7
25
$0
$10
$20
$30
$40
$50
$60
$70
3Q07
Cost / Mix
Price
Materials &
Freight
3Q08
Consumer Packaging Earnings
3Q08 vs. 3Q07
Consumer Packaging Earnings
3Q08 vs. 3Q07
*Excludes a special charge of $8 million related to the reorganization of Shorewood’s Canadian operations

13
Average IP price realization (includes the impact of mix across all grades)
NA
Price
$67
Price/Ton
4%
Revenue
2%
Volume
3Q08 vs. 3Q07
Price
Revenue
Business
3Q08 vs. 2Q08
5%
2%
Volume
NA
Converting Businesses
$29
U.S. Coated Paperboard
Price/Ton
Business
Consumer Packaging
Consumer Packaging

14
($20)
($21)
($16)
Fuel & Freight
$35
$2,075
3Q08
$26
$1,970
2Q08
$30
$1,880
3Q07
Earnings
Sales
$ Million
xpedx
xpedx
Record operating profit
Solid volumes
in paper, packaging and
facility supplies
Benefiting from operating cost reductions
that reflect on going business redesign

15
Forest Products
Forest Products
33,000
30,000
36,000
Acres Sold
$1,564
$1,872
$2,991
Price / Acre
$305
$55*
3Q08
$41
$55
2Q08
$96
$120
3Q07
Earnings
($
Million)
Sales
($
Million)
Mineral rights sold for $260 million
Remaining land portfolio of 237,000 acres
*
Mineral
rights
sale
is
not
reflected
in
sales
but
in
Other
Income

16
Ilim’s results are reported on a one-quarter lag
IP’s share of Ilim’s 2Q08 earnings include a $14 million favorable after-tax foreign exchange impact
IP’s share of Ilim’s 3Q08 earnings include a $4 million unfavorable after-tax foreign exchange impact
3Q08 vs. 2Q08
(3%)
(6%)
Volume
(000 Metric Tons)
$56
Containerboard
$20
Pulp
Price / Ton
Business
$5
$530
3Q08
$32
$555
2Q08
Earnings (IP Share)
Sales (100%)
$ Million
Ilim Joint Venture 3Q08 Results
IP’s After-Tax Share: $5MM or $0.01 EPS
Ilim Joint Venture 3Q08 Results
IP’s After-Tax Share: $5MM or $0.01 EPS

17
Special Items
3Q08
Special Items
3Q08
($22)
Legal Reserves
($29)
U.S. Taxes on non-U.S. Gain
($69)
CBPR Acquisition Costs
& Supply Chain Write-off
$0.35
$149
Net Earnings
$0.84
$356
Earnings from Continuing Operations
& Before Special Items
Special Items:
Earnings per
Share
$ Million
($84)
Inverurie Mill Asset Impairment Charge
($3)
Other
($0.49)
($207)
Total Special Items

18
(.04)
1.54
(.14)
1.80
.02
.73
.34
.09
1.21
.11
(1.07)
.13
(.04)
$0.00
$0.25
$0.50
$0.75
$1.00
$1.25
$1.50
$1.75
$2.00
$2.25
$2.50
9M07
Price
Materials
& Freight
Cost / Mix
Volume
Corporate
/ Other
Ilim
Vicksburg
Tax
Interest
Shares
9M08
$ / Share
$ / Share
IPG        .17
CPG       .09
P&C       .34
Eu
& Br  .13
Fiber           (.21)
Chemicals   (.31)
Energy        (.37)    
Freight        (.18)
9M08 vs. 9M07 EPS
Higher Prices, Volume & Mix,
Higher Input Costs
9M08 vs. 9M07 EPS
Higher Prices, Volume & Mix,
Higher Input Costs
1.08
.46
Earnings
from
continuing
operations
before
special
items;
volume
includes
earnings
from
CBPR
Forest
Products
Earnings
9M08   32%
9M07   30%
.59

19
Free Cash Flow Improvement
Free Cash Flow Improvement
$621
$72
$549
$603
($804)
$1,407
9M07
$1,224*
($732)
$1,956*
9M08
Free Cash Flow
Less Capital Investment
Cash Provided by
Continuing Operations
Free Cash Flow
($ Million)
* Includes $260 million from mineral rights sale

20
Sharp Demand Declines
Weak Economic Activity
Significant Currency Volatility
Capacity Curtailments
The World Has Changed
Weak Market Conditions in 4Q08
The World Has Changed
Weak Market Conditions in 4Q08

21
4Q08 Outlook
Changes from 3Q08
4Q08 Outlook
Changes from 3Q08
Brazil Improving
Europe Under Pressure
Steady
Paper
Ex-North America
North America
Seasonal Improvement
Steady
Steady
Decreasing
Volume
Pricing
Declining
Packaging
Decreasing
Market Pulp
Declining
Improving Realization
Paper
Packaging

22
Transportation
Freight
Electricity
Energy
Starch
Chemicals
Fiber
Sodium Chlorate
Coal
Wood
Caustic Soda
Old Corrugated Containers
Commodity
Fuel Oil
Natural Gas
4Q Cost
Trend
Input and Freight
Costs
No Significant Input Cost Relief in 4Q
Input and Freight
Costs
No Significant Input Cost Relief in 4Q

23
4Q08 Outlook
Changes from 3Q08
4Q08 Outlook
Changes from 3Q08
Remain High
Remain High
Input & Freight Costs
Ex-North America
North America
Steady
Decrease
Steady
Operations
Flat
Maintenance Outages

24
3Q08 Summary
3Q08 Summary
Solid Quarter
Continued Input Cost Inflation
Selling Price Improvement
Good Operations
Strong Start on CBPR Integration
Strong Cash Flow

25
Questions & Answers
Questions & Answers
Investor Relations Contacts
Thomas A. Cleves
901-419-7566
Ann-Marie Donaldson
901-419-4967
Emily Nix
901-419-4987
Media Contact
Patty Neuhoff
901-419-4052

26
Appendix

27
30%
$206
$297
$1.1
$1.3
2007
1
32 -
33%
$140 -
$160
$475 -
$500
$1.4
$1.1
2008
Estimate
29%
$276
$521
$1.2
$1.1
2006
1
Effective Tax Rate
2
Corporate Items
2
($ Million)
Net Interest Expense
($ Million)
Depreciation & Amortization
($ Billion)
Capital Spending
($ Billion)
1
Excludes discontinued operations and Coated Papers
2
Before special items and excluding Ilim
Key Financial Statistics
Key Financial Statistics

28
Cash & Committed Liquidity
Cash & Committed Liquidity
-
$800
-
Cash
$3,300
$1,500
$1,000
Capacity
($MM)
Facility
Maturity
Cost
Receivables Facility
(Zero
Drawn
)
OCT 2009
CP Rate + 30 bps
Corporate Revolver
(Zero
Drawn
)
MAR 2011
LIBOR + 40 -
50 bps
Total Cash & Committed Liquidity
1
1
2
1 –
As of September 30, 2008
2 –
Zero drawn
as of October 30, 2008 and $40 million drawn as of September 30, 2008

29
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
$2,000
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
US
Non-US
Debt Maturity Profile
Debt Maturity Profile

30
0
7
2
0
Brazil
0
29
9
0
Europe
$19
$32
$41
$28
North America
$81
$10
$3
$68
3Q08
$105
$13
$40
$52
2Q08
$44
$14
$11
$19
4Q08E
Total Impact
Consumer Packaging
Industrial Packaging
Printing Papers Total
$ Millions
$53
$1
$24
$28
1Q08
Dollar impact of planned maintenance outages are estimates and  subject to change
Planned Maintenance Outages
Planned Maintenance Outages

31
Operating Profits by Industry Segment
from Continuing Operations before Special Items
Operating Profits by Industry Segment
from Continuing Operations before Special Items
$265
$302
$315
Earnings from continuing operations before income
taxes, equity earnings & minority interest
$5
$32
NA
Equity Earnings, net of taxes -
Ilim
$(40)
$(21)
$(56)
Corporate Items
$(34)
$4
$(77)
$478
96
30
27
84
$241
3Q07
$(259)
$(1)
$(144)
$709
305
35
6
153
$210
3Q08
$(10)
Special Items
$406
Operating Profit
$(81)
Net Interest Expense
$8
Minority Interest / Equity Earnings Adjustment
41
26
26
87
$226
2Q08
Forest Products
Distribution
Consumer Packaging
Industrial Packaging
Printing Papers
$ Million

32
Geographic Business Segment Operating
Results
from Continuing Operations before Special Items
Geographic Business Segment Operating
Results
from Continuing Operations before Special Items
Operating Profit
Sales
$ Million
$26
5
8
$13
2
20
$65
0
11
51
39
$125
2Q08
$30
4
3
$20
0
10
$74
0
18
54
34
$135
3Q07
(1)
105
95
85
Asian
$35
0
$7
2
11
$140
1
(9)
58
29
$131
3Q08
$2,075
80
$645
100
285
$1,935
5
210
255
425
$905
3Q08
$1,970
75
$625
95
315
$1,060
5
205
255
445
$880
2Q08
$1,880
70
$620
65
265
$975
5
165
250
370
$870
3Q07
Asian
Industrial Packaging
North American
European
Asian
Distribution
European
North American
Consumer Packaging
U.S. Market Pulp
Brazilian
European
North American
Printing Papers
Excludes Forest Products

33
2008 Earnings from Continuing Operations
2008 Earnings from Continuing Operations
1
Assuming dilution
2
A
reconciliation
to
GAAP
EPS
is
available
at
www.internationalpaper.com
under
the
Investors
tab
at
presentations
0.35
423
45
149
5
(3)
(118)
265
3Q08
(0.49)
423
20
(207)
0
0
52
(259)
3Q08
0.84
423
32.5
356
5
(3)
(170)
524
3Q08
$0.35
423
30%
$150
$16
$(5)
$(59)
$198
1Q08
$(0.06)
423
39%
$(25)
$0
$0
$16
$(41)
1Q08
$0.41
423
31.5%
$175
$16
$(5)
$(75)
$239
1Q08
30
0
30
Equity
Earnings
0.54
(0.02)
0.56
Diluted
EPS
2
423
30
(7)
0
3
(10)
2Q08
Earnings from Continuing Operations
423
32
228
(7)
(97)
302
2Q08
235
Net
Income
$MM
32.5
Estimated
Tax Rate
(7)
Minority
Interest
$MM
Special Items
312
Pre-Tax
$MM
423
(100)
2Q08
Before Special Items
Average
Shares
1
MM
Tax
$MM

34
Business Segment Price Realization
Business Segment Price Realization
864
$567
3Q08
645
$1,013
3Q08
851
$556
2Q08
651
$988
2Q08
792
$521
3Q07
605
$912
3Q07
Average Selling Price
Realizations
Industrial Packaging ($/ton)
Printing Papers ($/ton)
Containerboard
Corrugated Boxes
Market Pulp
Uncoated Freesheet
Average IP U.S. selling price realizations (includes the impact of mix across all grades)
Does not include CBPR

35
.36
.49
.02
.56
.10
(.03)
.84
.10
(.16)
(.10)
(.06)
$0.00
$0.10
$0.20
$0.30
$0.40
$0.50
$0.60
$0.70
$0.80
$0.90
2Q08
Price
Materials &
Freight
Cost /  Mix
Volume
Interest
Ilim
Corporate /
Other
3Q08
$ / Share
$ / Share
3Q08 vs. 2Q08 EPS
Higher Prices,
Volume & Mix,
Higher Input Costs
3Q08 vs. 2Q08 EPS
Higher Prices,
Volume & Mix,
Higher Input Costs
Earnings
from
continuing
operations
before
special
items;
volume
includes
earnings
from
CBPR
IPG        .03
CPG       .02
P&C       .04
Eu
& Br  .01
Fiber           (.03)
Chemicals   (.07)
Energy        (.04)    
Freight        (.01)
Cost / Mix    (.02)
Outages        .04
Forest
Products
Earnings
.07
.48

36
Printing Papers Earnings
3Q08 vs. 2Q08
Printing Papers Earnings
3Q08 vs. 2Q08
226
210*
3
33
9
(50)
(11)
$0
$50
$100
$150
$200
$250
$300
2Q08
Price
Materials &
Freight
Volume
Cost / Mix
Other
3Q08
* Excludes a special impairment charge of $107 million to write down the Inverurie mill assets to estimated fair market value

37
Industrial Packaging Earnings
3Q08 vs. 2Q08
Industrial Packaging Earnings
3Q08 vs. 2Q08
1
Excludes trade volume and includes CBPR earnings
2
Excludes special charges of $39 million related to the write-up of inventory to fair value in connection with the CBPR
acquisition and $19 million for CBPR integration costs
(24)
(5)
87
153
2
54
1
14
37
(10)
$0
$25
$50
$75
$100
$125
$150
$175
2Q08
Price
Materials
& Freight
Volume
Cost /
Mix
Outages
Other
3Q08

38
(4)
26*
6*
(5)
(24)
(5)
5
13
$0
$10
$20
$30
$40
$50
2Q08
Price
Materials
& Freight
Volume
Cost /
Mix
Outages
Other
3Q08
Consumer Packaging Earnings
3Q08 vs. 2Q08
Consumer Packaging Earnings
3Q08 vs. 2Q08
*
Excludes
special
charges
of
$13
and
$8
million
in
2Q08
and
3Q08,
respectively,
related
to
the
reorganization
of
Shorewood’s Canadian operations

39
Improving Logistics Efficiency
Progress in Consumption Reduction
Improving Logistics Efficiency
Progress in Consumption Reduction
Distribution Costs/Ton
U.S. Paper & Packaging
$58
$65
$61
$7
$55
$57
$59
$61
$63
$65
$67
1H07
1H08
Fuel &
Rates
1H08 Net of
Inflation

40
IP Wood Cost per Ton
Expecting Continuing Escalation
IP Wood Cost per Ton
Expecting Continuing Escalation
Reduced Harvest Volume
Impact on 4Q08
Wood Cost
Total Impact
Decreasing Diesel Fuel Cost
Insufficient Logging Capacity
Paper & Packaging Industry Demand
Lack of Residual Wood Chips
Factors
2006 - 2008YTD Wood Cost per Ton
$28
$29
$30
$31
$32
$33
$34
$35
$36
$37
$38
2006 AVG
2007 AVG
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep

41
Total Cash Cost Components
9M08
Total Cash Cost Components
9M08
North American Mills Only
Does not include CBPR
Energy
13%
Materials
13%
Labor
13%
Fiber
27%
Freight
13%
Overhead
8%
Chemicals
13%

42
($160)
($140)
($120)
($100)
($80)
($60)
($40)
($20)
$0
Wood
Energy
Chemicals
Freight
OCC
Global Input & Freight Costs by Segment
$286 Million Global Impact vs. 3Q07
Global Input & Freight Costs by Segment
$286 Million Global Impact vs. 3Q07
Consumer
Packaging
($53)
Industrial
Packaging
($80)
Printing
Papers
($153)
Input costs for continuing businesses; does not include CBPR

43
(45)
(24)
(19)
(11)
($50)
($40)
($30)
($20)
($10)
$0
$10
Chemicals
Energy
Fiber
Freight
North America
Outside North America
Increasing Global Input & Freight Costs
$99MM, or $0.16/Share Impact vs. 2Q08
Increasing Global Input & Freight Costs
$99MM, or $0.16/Share Impact vs. 2Q08
Input costs for continuing businesses; does not include CBPR
Percentage change reflects North American input costs
5%
5%
10%
15%
N.A. 

44
(228)
(191)
(129)
(109)
($250)
($200)
($150)
($100)
($50)
$0
Energy
Chemicals
Fiber
Freight
North America
Outside North America
Increasing Global Input & Freight Costs
$657MM, or $1.07/Share Impact vs. 9M07
Increasing Global Input & Freight Costs
$657MM, or $1.07/Share Impact vs. 9M07
Input costs for continuing businesses; does not include CBPR
Percentage change reflects North American input costs
10%
15%
40%
40%
N.A. 

45
0
50
100
150
200
250
Jan
Apr
Jul
Oct
Jan
Apr
Jul
Oct
Jan
Apr
Jul
Oct
Jan
Apr
Jul
2005
2006
2007
NYMEX Natural Gas closing prices
Index: Jan 2005 Natural Gas Costs = 100
Natural Gas Costs
66% Increase
vs. 3Q07 Average
Cost
Natural Gas Costs
66% Increase
vs. 3Q07 Average
Cost
2008

46
60
80
100
120
140
160
180
200
220
Jan
Apr
Jul
Oct
Jan
Apr
Jul
Oct
Jan
Apr
Jul
2006
2007
Index: Jan 2006 Fuel Oil Costs = 100
U.S. Fuel Oil
79% Increase
vs. 3Q07 Average
Cost
U.S. Fuel Oil
79% Increase
vs. 3Q07 Average
Cost
2008
Delivered cost to U.S. facilities
Does not include CBPR

47
90
95
100
105
110
115
120
Jan
Apr
Jul
Oct
Jan
Apr
Jul
Oct
Jan
Apr
Jul
Oct
Jan
Apr
Jul
U.S. Mill Wood Costs
13% Increase
vs. 3Q07 Average
Cost
U.S. Mill Wood Costs
13% Increase
vs. 3Q07 Average
Cost
Index: Jan 2005 Wood Costs = 100
2005
2006
2007
2008
Delivered cost to U.S. facilities
Does not include CBPR

48
50
75
100
125
150
175
200
Jan
Apr
Jul
Oct
Jan
Apr
Jul
Oct
Jan
Apr
Jul
Oct
Jan
Apr
Jul
2005
2006
2007
2008
Index: Jan 2005 Caustic Soda Costs = 100
U.S. Caustic Soda Costs
75% Increase
vs. 3Q07 Average
Cost
U.S. Caustic Soda Costs
75% Increase
vs. 3Q07 Average
Cost
Delivered cost to U.S. facilities
Does not include CBPR

49
100
125
150
175
200
225
250
Jan
Apr
Jul
Oct
Jan
Apr
Jul
Oct
Jan
Apr
Jul
2006
2007
Index: Jan 2006 Starch Costs = 100
Delivered cost to U.S. facilities
Does not include CBPR
U.S. Starch Costs
19% Increase
vs. 3Q07 Average
Cost
U.S. Starch Costs
19% Increase
vs. 3Q07 Average
Cost
2008

50
Global Consumption
Annual Purchase Estimates for Key Inputs
Global Consumption
Annual Purchase Estimates for Key Inputs
Does
not
include
Asian
or
Ilim
consumption;
includes
consumption
by
Valliant
#3
and
Albany
#2
machines
110,000
500,000
Starch (Tons)
Chemicals
Fiber
Energy
50,000
250,000
Sodium Chlorate (Tons)
-
40,000
LD Polyethylene (Tons)
4,000
25,000
Latex (Tons)
230,000
1,200,000
Coal (Tons)
8,400,000
52,000,000
Wood (Tons)
60,000
350,000
Caustic Soda (Tons)
310,000
3,500,000
Old Corrugated Containers (Tons)
Commodity
500,000
16,000,000
Non –
U. S.
2,100,000
Fuel Oil (Barrels)
55,000,000
Natural Gas (MM BTUs)
U. S.