Q3 Paper Outlook — Big Paper Cuts

John Dillon, chairman and CEO of International Paper, concedes that a slow economy has taken its toll on the company's earnings, which were down to $.05 per share compared to last year when earnings were $.60 per share. "While we can't change the economy, we are changing the company. We are taking actions that are benefiting shareholders in the short-term and positioning the company to win in the long-term. We are matching production to our orders, which has led to reductions in inventories."