(Reuters) - International Paper posted a surprise fourth-quarter loss and missed sales estimates on Thursday due to slowing demand from clients, including consumer goods and e-commerce companies, opting for cheaper alternatives.
Shares of the company fell nearly 2% in premarket trading.
The company's strategy of raising prices for its industrial packaging offerings has impacted sales volumes, especially in North America.
International Paper said the fourth-quarter profit was also hit by the $215 million accelerated depreciation expense from the closure of its pulp mill in Georgetown, South Carolina.
Its quarterly selling and administrative costs for the quarter grew 46% to $521 million.
Peer Packaging Corp of America also missed quarterly profit estimates on Tuesday due to slowing demand and higher operating costs.
For the fourth quarter, the company posted net sales of $4.58 billion, below the average analyst estimate of $4.75 billion, according to data compiled by LSEG.
On an adjusted basis, International Paper posted a loss of 2 cents per share, compared with expectations for a profit of 2 cents.
The Memphis, Tennessee-based company secured EU clearance for its 5.8-billion-pound ($7.2 billion) acquisition of UK rival DS Smith last Friday, after agreeing to sell assets to address competition concerns.
(Reporting by Neil J Kanatt in Bengaluru; Editing by Vijay Kishore)
