IP’s 4th-Quarter Profit Won’t Meet Forecasts

International Paper Co., the world’s biggest paper maker, said fourth-quarter profit will be less than forecasts and it will trim output as the U.S. economy slows and energy costs rise. The company expects profit of about 30 cents a share, compared with the 44-cent average estimate of analysts surveyed by First Call/Thomson Financial. IP posted profit of 55 cents in the year-earlier quarter. IP and other forest products companies are shutting plants and cutting production to keep pace with declining orders and avoid a paper glut that would knock down prices. The company is cutting production by 700,000 tons in the quarter, Chief Financial Officer John Faraci said. Other forest products companies, including Mead Corp., Temple-Inland Inc. and Boise Cascade Corp., have said their fourth-quarter profits would fall short of forecasts. International Paper fell $1.88 to close at $37.63 on the New York Stock Exchange.