STAMFORD, Conn. (AP) – International Paper Tuesday reported a loss of $549 million in the third quarter, primarily due to the write-down of assets for the sale of a Canadian subsidiary.

The world’s largest paper company said the charge for the sale of the Weldwood of Canada, Ltd. subsidiary, expected to be completed in the fourth-quarter, resulted in a net loss of $1.13 per share in July-September period compared with net earnings of $122 million, or 25 cents per share, for the same period last year.

Excluding one-time charges, the company reported that earnings from continuing operations were 43 cents a share in the quarter, which fell below the consensus estimate of 45 cents per share by analysts surveyed by Thomson First Call.

Revenue for the quarter was $6.6 billion, up from $6.1 billion a year ago.

International Paper has mills in Maine at Jay and Bucksport.

Although the company said sales remained strong, earnings were affected by rising costs and the weather.

“Our volumes remained strong during the quarter and price increases continued to be implemented across most grades of paper and packaging,” said John Faraci, International Paper chairman and chief executive. “However, this was somewhat offset by lower wood products pricing, rising raw material costs and the effect of the hurricanes that that hit Florida and the Gulf Coast region impacting sixteen of our facilities.”

For the first nine months of 2004, IP reported a net loss of $283 million, or 58 cents per share, on revenue of $18.9 billion.

That compared with earnings for the same period last year of $254 million, or 53 cents per share, on revenue of $17.8 billion.

Shares of International Paper gained 8 cents to $38.89 in morning trading on the New York Stock Exchange.