STAMFORD, Conn. (AP) – International Paper Co., the world’s largest paper company, on Thursday reported first-quarter earnings of $44 million versus a loss of $1.1 billion a year ago when it took a big accounting writedown related to the reduced value of its assets.

The profit of 9 cents per share in the January-March period contrasted with a loss of $2.31 per share in the first quarter of 2002.

The 2003 figures reflect an after-tax charge of $10 million, or 2 cents per share, for accounting changes. The per-share earnings of 11 cents before the accounting change fell a penny short of estimates from analysts surveyed by Thomson First Call.

The 2002 loss reflected a $1.2 billion writedown required by new accounting rules to reflect the reduced value of its assets. Without the change, earnings in the first quarter of 2002 were $65 million.

“While we’re still nowhere near where we want to be, our strong focus on internal improvements and customer service continues to positively impact our results,” said John Dillon, International Paper’s chairman and chief executive officer.

Sales rose to $6.1 billion from $6 billion in the first quarter of 2002.

Special items in the first quarter of this year also included a net charge of $23 million before taxes for costs related to the shutdown of a pulp mill in Natchez, Miss.

International Paper operates mills in Jay and Bucksport, Maine. Its shares rose 12 cents to $35.84 in early trading on the New York Stock Exchange.

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