April 25 (Reuters) - Packaging company International

Paper ( IP ) beat Wall Street's expectations for first-quarter

sales on Thursday, capitalizing on higher prices, improved

production and a rebound in demand for its products.

Initially buoyed by a surge in online shopping during the

pandemic, paper and packaging firms faced a slowdown when

economies reopened. However, demand is on the rise again and

costs - notably for energy, input, freight and wood - have

moderated from previous highs.

Peer Packaging Corp of America ( PKG ) reported a quarterly

revenue beat on Tuesday from higher pricing, improved production

and a recovery in demand for its corrugated packaging products.

Earlier in the year, European packaging giant Smurfit Kappa

, said the worst of the slowdown in terms of demand for

paper and containerboard seemed behind it.

International Paper's ( IP ) total net sales fell about 8%, to

$4.61 billion in the first quarter, but topped analysts'

estimate of $4.56 billion, according to LSEG data.

On an adjusted basis, the company's operating earnings came

in at 17 cents per share, missing an expectation of 22 cents per

share, sending shares down 2% in premarket trading.

The world's leading paper company by revenue, it agreed to

an all-share deal to buy DS Smith ( DITHF ) earlier this month,

valuing the British packaging firm at 5.8 billion pounds ($7.2

billion) and edging out an offer by Mondi ( MNODF ).