Jan 29, 2009. /Lesprom.com/. International Paper has recorded a net loss of $452 million for the 4Q 2008, compared with earnings of $327 million in the same period of 2007, the company said in a statement received by Lesprom Network. Full-year 2008 earnings from continuing operations and before special items were $855 million ($2.01 per share) compared with $963 million ($2.22 per share) in 2007. Earnings from continuing operations and before special items in the 4Q 2008 totaled $89 million ($0.21 per share), compared with $294 million ($0.69 per share) in the 4Q 2007. Quarterly net sales rose to $6.5 billion from $5.8 billion in the 4Q 2007. Annual sales increased to $24.8 billion compared with $21.9 billion in 2007. Operating profits in the 4Q were $132 million, down from $566 million in the 4Q 2007. Full-year 2008 operating profits were $1.4 billion compared with $1.9 billion in 2007. At year end, International Paper had $1.1 billion in cash and $2.5 billion in committed liquidity facilities, and increased its free cash flow in 2008 to about $1.7 billion, or about 160% over 2007 levels, by reducing capital spending, focusing on working capital management and reducing overhead spending. In 2009, the company is taking additional measures to improve its cash position including continuing to reduce capital spending, suspending 2009 merit raises for U.S. salaried employees and matching company contributions to the Salaried Savings Plan with shares of company stock rather than with cash. "International Paper had a solid year overall despite a weak fourth quarter," said International Paper Chairman and CEO John Faraci. "Free cash flow 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 cash flow in the current difficult environment."