UPDATE 2-American Greetings posts Q4 loss on charges

* Q4 loss/shr $1.13 vs profit $0.31 last year

* Revenue falls 14 pct to $422.5 mln

* Sees FY capex of about $35 mln-$45 mln

* Shares fall 13 pct

(Recasts; adds conference call details, share movement)

April 28 (Reuters) - American Greetings Corp (AM.N) posted a fourth-quarter loss, hurt mainly by non-cash goodwill impairment charges, and said it expects net revenue to decline in the current financial year, sending its shares down 13 percent.

The revenue decline will be driven primarily by continued weakness in non-card product lines, particularly gift packaging, Chief Executive Zev Weiss said on a conference call with analysts.

Excluding the recent acquisitions of Recycled Paper Greetings Inc and the Papyrus brand of Schurman Fine Papers, the company expects a decline in net revenue of about 5 percent this year. However, American Greetings, the second-largest U.S. greeting-card maker behind Hallmark Cards, expects margins to improve, helped by cost reduction efforts. It cut about 275 jobs in December.

Long-term debt of the company rose by about $169 million to $389.5 million. The company said it is in compliance with its debt covenants.

The company said it plans to reduce capital expenditure to about $35 million to $45 million from about $56 million last year.

For the fourth quarter ended Feb. 28, American Greetings, which sells Carlton Cards and Plus Mark, posted a loss of $50.1 million, compared with a profit of $15.6 million, a year earlier.

The company recorded non-cash goodwill impairment charges of about $42.6 million, reducing earnings by 97 cents a share during the period.

Excluding items, it posted a profit of 19 cents a share, according to Reuters Estimates.

Same-store sales fell 6.1 percent in the quarter.

Shares of the Cleveland-based company were trading down $1.07 at $7.27 Tuesday afternoon on the New York Stock Exchange. They touched a low of $7.22 earlier in the day.

For related alerts, double click [ID:nWNAB9095] (Reporting by Renju Jose in Bangalore; Editing by Vinu Pilakkott and Anne Pallivathuckal)