NEW YORK (S&P Global Ratings) Feb. 3, 2020--S&P Global Ratings today said Memphis-based International Paper Co. (IP) (BBB/Stable/A-2) reported 2019 free cash flow of $2.3 billion, exceeding our previous expectations of about $2 billion, as capital spending was lower than projected and there was modest improvement in working capital. Still, IP experienced pricing and volume declines across its portfolio. The company was able to partially offset margin pressure by using its flexible North American system to produce in its lowest-cost areas, and by increasing maintenance downtime for mills in response to sluggish demand and elevated customer inventory levels. We expect lower pricing to persist in 2020 amid modest industry demand growth, coupled with additional capacity coming to the North American
