Mar 05, 2009. /Lesprom Network/. Verso Paper Corp. reported a wider loss for the 4Q, as lower coated paper demand pushed sales volumes down by nearly 27%. In addition, the company suspended dividend payments indefinitely and said it expects a sequential decline in 1Q earnings. The Memphis, Tennessee-based company's quarterly net loss widened to $33.56 million or $0.64 per share from $8.05 million or $0.21 per share in the previous year. Net sales for the quarter declined 15.7% to $375.88 million from $445.8 million a year earlier, as total sales volume dropped 26.7%, reflecting lower coated paper demand in a difficult economic environment. Gross margin dropped to 13.6% from 17.7% last year due to increased input prices for key direct expenses and a $15.8 million of unabsorbed costs resulting from the downtime taken in the fourth quarter of 2008. For the full year, the company's net loss narrowed to $62.82 million or $1.35 per share from $111.46 million or $2.93 per share in the preceding year. Net sales increased to $1.77 billion from $1.63 billion last year. Further, Verso said it has suspended the payment of dividends on its common stock indefinitely and has elected to not make a dividend payment for the 4Q 2008. However, the company said it will reevaluate the reinstatement of common stock dividends throughout 2009. Looking forward, Jackson, President and CEO of Verso, said, "We have prepared ourselves for a challenging 2009 and have taken appropriate actions, including salary freezes, SG&A reductions, workforce planning improvements, and new product opportunities. Nonetheless, we expect 1Q 2009 earnings to be sequentially down from fourth quarter 2008 levels." Verso Paper Corp. produces coated papers, including coated groundwood and coated freesheet, and supercalendered and specialty products.