Mar 02, 2009. /Lesprom Network/. International Paper announced that its Board of Directors has reduced the company's quarterly common stock dividend from $0.25 per share to $0.025 per share, effective for the dividend payable June 15, 2009, to shareholders of record on May 18, 2009. This reduction will allow the company to preserve approximately $100 million in cash on a quarterly basis, which will be used to reduce debt more quickly. "While our cash balances and cash flows remain solid, we believe it is prudent to manage cash conservatively in this uncertain economic environment," said Chairman and CEO John Faraci. "This decision, which reflects our strong commitment to maintaining our current credit ratings, is a proactive step to maximize our financial flexibility, along with our earlier decisions to reduce capital investment, decrease overhead spending and headcount, and freeze salaries." The Company declared a regular quarterly dividend of $0.025 per share for the period from April 1, 2009 to June 30, 2009, inclusive, on its common stock, par value $1. This dividend is payable on June 15, 2009 to holders of record at the close of business on May 18, 2009. The Company also declared a regular quarterly dividend of $1 per share for the period from April 1, 2009 to June 30, 2009, inclusive, on the cumulative $4 preferred stock of the company. This dividend is also payable on June 15, 2009, to holders of record at the close of business on May 18, 2009. International Paper is a global paper and packaging company with manufacturing operations in North America, Europe, Latin America, Russia, Asia and North Africa. Its businesses include uncoated papers and industrial and consumer packaging, complemented by xpedx, the company's North American distribution company.