July 23 (Reuters) - Packaging company International

Paper ( IP ) missed Wall Street expectations for second-quarter

sales on Wednesday, on tepid demand for its corrugated packaging

containers.

WHY IT'S IMPORTANT

The company makes corrugated packaging, cartons of which are

used to box commodities ranging from processed food, proteins

and beverages to car engines, as well as orders made over

e-commerce platforms.

Packaging companies have contended with weak demand from

consumer goods companies, which have trimmed their inventories

as spending remained muted due to inflation.

International Paper ( IP ), like its peers, has raised prices for

its containerboards in order to protect profits.

CONTEXT

Rival firm Packaging Corp of America ( PKG ) beat estimates

for second-quarter revenue earlier this week, and brokerage

Jefferies noted that stronger demand for the company was not

"the best read" for International Paper ( IP ).

Jefferies added it expects Packaging Corp to continue to

outpace International Paper ( IP ) in share gains as the latter works

to trim its portfolio.

KEY QUOTE

"While our second-quarter financial results increased

sequentially on better price and seasonally higher volumes, we

expect near-term performance to be challenged," said Andy

Silvernail who has been the company's chief executive officer

since May.

Silvernail added the company will make necessary changes to

its portfolio and cut costs in the interest of profitability.

BY THE NUMBERS

The company's second-quarter net sales rose 1.1% to $4.73

billion, but fell short of estimates of $4.78 billion, as per

LSEG data.

International Paper ( IP ) reported second-quarter adjusted

earnings per share of 55 cents, compared with market

expectations of 41 cents.

MARKET REACTION

Shares of the company, which have risen 27% so far this year

were down 2.8% in premarket trade.