Feb 07, 2008. /Lesprom.com/. International Paper preliminary full-year 2007 net earnings total $1.2 billion ($2.70 per share) compared with $1.1 billion ($2.18 per share) in 2006. The company reports 4Q 2007 net earnings of $327 million ($0.78 per share) compared with $217 million ($0.51 per share) in the prior quarter and $2 billion ($4.38 per share) in the 4Q 2006, International Paper announced. Amounts in all periods include special items; most notably, 2006 4Q net earnings include an after-tax gain of $2.7 billion ($6.07 per share) from the sale of U.S. forestlands. Operating profits in the 4Q reached $711 million, up from $610 million in the prior quarter and $425 million in the 4Q 2006. Full-year 2007 operating profits of $2.4 billion also rose, up from $2.1 billion in 2006. "We increased profits before special items by 52% in 2007, which is strong evidence that the transformation we began in 2005 is continuing to pay off," said International Paper chairman and CEO John Faraci. "We've steadily expanded our margins through internal cost controls and by focusing on the right customers and product segments within our key businesses. Our global investments are adding to revenue and profit growth and helping to offset some demand decline in North America." CFO and Senior Vice President Tim Nicholls added, "Solid 4Q results tell the same story. Margins and volumes continue to improve, contributing to strong business earnings in paper, packaging and xpedx. Improved price realizations in the quarter helped offset the impact of continuing increases in raw material and distribution costs, but we expect continued input cost pressures in the 1Q 2008. Uncertainty within the North American economy will also play a role in the first quarter, but we will continue to balance our supply with our customers' demand. Global demand for paper and packaging continues to look solid." International Paper is a global forest products, paper and packaging company with primary markets and manufacturing operations in the United States, Europe, Latin America and Asia, complemented by xpedx, an extensive North American merchant distribution system.