International Paper (IP) and Mead Corporation have both issued warnings that fourth quarter earnings could fall well below Wall Street expectations.


Both companies said the fall was due to the slowing of the US economy, high energy prices and weak foreign currency.


IP has said it expected to take more than 100,000 tonnes of additional downtime in the fourth quarter, bringing its total for the period to around 700,000 tonnes.


It has pointed to a 27.2m ($40m) rise in its energy costs, particularly natural gas, as a major factor for the loss in earnings.


We intend to keep production in line with demand, and are taking steps to respond to weakened market conditions, said IP executive vice president and chief financial officer John Faraci.


Mead predicted that results would come in at between 15-20 cents per share, as opposed to analysts estimates of 33 cents per share.


Mead also said that earnings for its paper side would be down 10.1m on the same period last year, while its packaging and paperboard side was expected to fall by about 13.5m.


Story by Andy Scott