Feb 26, 2013. /Lesprom Network/. Boise Inc. reported net income of $13.5 million, or $0.13 per diluted share, for 4Q 2012, compared with net income of $16.3 million, or $0.15 per diluted share, for 4Q 2011. Net income for the year ended 2012 was $52.2 million, or $0.52 per diluted share, compared with $75.2 million, or $0.70 per diluted share, for the year ended 2011. Net income excluding special items for the year ended 2012 was $71.6 million, compared with $79.9 million for the year ended 2011, as the company said in a press release received by Lesprom Network.. EBITDA excluding special items was $78.7 million for 4Q 2012, compared with EBITDA excluding special items of $85 million for 4Q 2011. EBITDA excluding special items was $331.8 million for the year ended 2012, versus our record 2011 EBITDA excluding special items of $340.2 million. "We were pleased with our overall 2012 operating results," said Alexander Toeldte, president and CEO of Boise Inc. "Our mills and converting operations ran well, and we reduced costs through productivity improvement by reducing usage of key raw materials. During the year, we generated significant free cash flow and returned capital to our shareholders through the payment of two special cash dividends totaling $1.20 per common share. Despite these achievements, our 2012 results were affected adversely by margin compression in some of our Packaging operations and declining prices in our Paper business." Packaging segment sales for 4Q 2012 were $287.3 million, an increase of $35.9 million, or 14%, compared with $251.4 million in 4Q 2011. Packaging segment sales for full year 2012 were $1,130.1 million, an increase of $180.4 million, or 19%, compared with $949.7 million for 2011. Packaging segment EBITDA, excluding special items, was $47.1 million for 4Q 2012, a slight increase from $46.9 million in 4Q 2011. Packaging segment EBITDA, excluding special items, for full year 2012 was $162.5 million, an increase of $3.2 million, or 2%, compared with 2011. Paper segment sales for 4Q 2012 were $352.7 million, a decrease of $7 million, or 2%, compared with 4Q 2011. Paper segment sales decreased $17.3 million, or 5%, compared with 3Q 2012. Paper segment sales for full year 2012 were $1,468.3 million, down 2% compared with 2011, due to lower sales prices of uncoated freesheet and lower sales prices and volumes of market pulp. Paper segment EBITDA, excluding special items, was $38.7 million for 4Q 2012, a decrease of $5.7 million, or 13%, compared with 4Q 2011. This decrease was due primarily to lower sales prices of uncoated freesheet. This decline was largely offset by generally lower input and maintenance outage costs. Paper segment EBITDA, excluding special items, for 4Q 2012 decreased $19.9 million from 3Q 2012 as a result of lower sales volumes and net selling prices for uncoated freesheet and higher maintenance outage costs as a result of annual outage at Jackson, Alabama, mill. Paper segment EBITDA, excluding special items, for full year 2012 was $193.3 million, a decrease of $8.2 million, or 4%, compared with $201.5 million for the year ended December 31, 2011. This decrease resulted from the $22 per short ton reduction in the average sales price of uncoated freesheet and the $107 per short ton reduction in the average sales price of market pulp. Boise Inc. manufactures a wide variety of packaging and paper products. Boise's range of packaging products includes linerboard and corrugating medium, corrugated containers and sheets, and protective packaging products. Boise's paper products include imaging papers for the office and home, printing and converting papers, and papers used in packaging, such as label and release papers.