UPDATE 1-Financial sector woes hurt Int'l Paper's volumes

(Adds details, CFO comments, share price move)

By Euan Rocha

NEW YORK, April 30 (Reuters) - The U.S. financial sector's woes are hurting International Paper Co's (IP.N: Quote, Profile, Research, Stock Buzz) printing paper shipment volumes, Chief Executive John Faraci said on Wednesday.

"In printing papers we certainly saw that the end of March was certainly slower than January and February," Faraci said on a conference call. "There is no question the economy has slowed and it's having an impact on commercial printing."

"There are less solicitations for credit cards, less solicitations for home equity loans. So business with Capital One and Citigroup is way down and we are seeing the impact of that," he added.

Citigroup Inc (C.N: Quote, Profile, Research, Stock Buzz) and Capital One Financial Corp (COF.N: Quote, Profile, Research, Stock Buzz) are among the major clients International Paper supplies with products for both direct mailing and internal company use.

Earlier in the day, the paper and packaging products maker posted first-quarter results that fell short of Wall Street's expectations, as pricing gains failed to offset the escalation in raw material costs.

The Memphis, Tennessee-based company's results were also hurt as its uncoated paper shipment volumes fell 7 percent in North America and 1 percent in Europe.

Chief Financial Officer Tim Nicholls said the decline in domestic printing paper volumes was also linked to increasing number of job cuts by banks and brokerage firms.