International Paper 2012 Annual Report Download - page 34

Sharon R. Ryan, 53, senior vice president, general
counsel and corporate secretary since November
2011. Ms. Ryan previously served as senior vice
president, acting general counsel and corporate
secretary from May 2011 until November 2011, and
as vice president from March 2011 until May 2011.
Ms. Ryan served as associate general counsel, chief
ethics and compliance officer from 2009 until 2011,
and as associate general counsel from 2006 until
2011. Ms. Ryan joined International Paper in 1988.
Mark S. Sutton, 51, senior vice president – industrial
packaging since November 2011. Mr. Sutton pre-
viously served as senior vice president – printing and
communications papers of the Americas from 2010
until 2011, senior vice president – supply chain from
2008 to 2009, and vice president – supply chain from
2007 until 2008. Mr. Sutton served as vice president –
strategic planning from 2005 until 2007. Mr. Sutton
joined International Paper in 1984.
RAW MATERIALS
Raw materials essential to our businesses include
wood fiber, purchased in the form of pulpwood,
wood chips and old corrugated containers (OCC),
and certain chemicals, including caustic soda and
starch. Information concerning fiber supply purchase
agreements that were entered into in connection
with the Company’s 2006 Transformation Plan and
the CBPR acquisition in 2008 is presented in Note 10
Commitments and Contingent Liabilities on page 66
of Item 8. Financial Statements and Supplementary
Data.
FORWARD-LOOKING STATEMENTS
Certain statements in this Annual Report on
Form 10-K that are not historical in nature may be
considered “forward-looking” statements within the
meaning of the Private Securities Litigation Reform
Act of 1995. These statements are often identified by
the words, “will,” “may,” “should,” “continue,”
“anticipate,” “believe,” “expect,” “plan,” “appear,”
“project,” “estimate,” “intend,” and words of a sim-
ilar nature. These statements are not guarantees of
future performance and reflect management’s cur-
rent views with respect to future events, which 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 include but
are not limited to: (i) the level of our indebtedness
and increases in interest rates; (ii) industry con-
ditions, including, but not limited to, changes in the
cost or availability of raw materials, energy and
transportation costs, competition we face, cyclicality
and changes in consumer preferences, demand and
pricing for our products; (iii) global economic con-
ditions and political changes, including but not lim-
ited to the impairment of financial institutions,
changes in currency exchange rates, credit ratings
issued by recognized credit rating organizations, the
amount of our future pension funding obligation,
changes in tax laws and pension and health care
costs; (iv) unanticipated expenditures related to the
cost of compliance with existing and new environ-
mental and other governmental regulations and to
actual or potential litigation; (v) whether we experi-
ence a material disruption at one of our manufactur-
ing facilities; (vi) risks inherent in conducting
business through a joint venture; (vii) our ability to
achieve the benefits we expect from strategic acquis-
itions, divestitures and restructurings. These and
other factors that could cause or contribute to actual
results differing materially from such forward look-
ing statements are discussed in greater detail below
in “Item 1A. Risk Factors.” We undertake no obliga-
tion to publicly update any forward-looking state-
ments, whether as a result of new information,
future events or otherwise.
ITEM 1A. RISK FACTORS
In addition to the risks and uncertainties discussed
elsewhere in this Annual Report on Form 10-K
(particularly in Item 7. Management’s Discussion and
Analysis of Financial Condition and Results of
Operations), or in the Company’s other filings with
the Securities and Exchange Commission, the
following are some important factors that could
cause the Company’s actual results to differ materi-
ally from those projected in any forward-looking
statement.
RISKS RELATING TO INDUSTRY
CONDITIONS
CHANGES IN THE COST OR AVAILABILITY OF
RAW MATERIALS, ENERGY AND TRANS-
PORTATION COULD AFFECT OUR PROFIT-
ABILITY. We rely heavily on the use of certain raw
materials (principally virgin wood fiber, recycled
fiber, caustic soda and starch), energy sources
(principally natural gas, coal and fuel oil) and third-
party companies that transport our goods. The
market price of virgin wood fiber varies based upon
availability and source. In addition, the increase in
demand of products manufactured, in whole or in
part, from recycled fiber, on a global basis, may
cause an occasional tightening in the supply of
recycled fiber. Energy prices, in particular prices for
oil and natural gas, have fluctuated dramatically in
the past and may continue to fluctuate in the future.
Our profitability has been, and will continue to be,
affected by changes in the costs and availability of
such raw materials, energy sources and trans-
portation sources.
THE INDUSTRIES IN WHICH WE OPERATE
EXPERIENCE BOTH ECONOMIC CYCLICALITY
AND CHANGES IN CONSUMER PREFER-
ENCES.
7