Its net sales for the quarter rose to $6.5bn, from $5.8bn in the same period of 2007.
The company’s industrial packaging business posted an operating profit of $111m for the quarter, up from $109m from the same period of 2007. It included $34m of charges for Weyerhaeuser packaging business integration and the closure of the Ace Packaging business.
IP said that despite recent significant demand declines in the containerboard and box businesses, price realisations were improved over last year’s fourth quarter and volume was up due to the Weyerhaeuser packaging acquisition.
It said input costs were higher in this year’s quarter.
Its European box business was able to grow market share even while encountering lower volumes, it added.
The company posted increased annual sales of $24.8bn, compared with $21.9bn in 2007.
Its full-year net earnings were almost halved at $57m, compared with $1.2bn in 2007.
John Faraci, International Paper chairman and chief executive, said: “International Paper had a solid year overall despite a weak fourth quarter. Free cashflow for the year was an all-time record and continued to be strong in the fourth quarter despite a severe contraction of global demand, particularly in North America.
“We started to take action early in 2008 and continued to focus on maintaining solid free cashflow in the current difficult environment,” he added.
The company’s consumer packaging division reported an operating loss of $3m, compared with a profit of $15m in the fourth quarter of 2007. It said as price realisations in foodservice and coated paperboard did not offset input costs and weak demand.
International Paper currently employs more than 50,000 people across facilities in North America, Latin America, Europe, Asia and North Africa.
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