International Paper 3rd-quarter net income slips

(Recasts, adds details on results, background, analyst comment, CEO comment)

By Euan Rocha

NEW YORK, Nov 2 (Reuters) - International Paper (IP.N: Quote, Profile, Research), one of the world's largest paper and packaging makers, said on Friday quarterly net profit slipped as gains from land sales fell sharply from a year ago.

Shares of the company declined about 1 percent as the Memphis, Tennessee-based company's outlook fell short of Wall Street's expectations.

"I think the number for the quarter came in as expected, but the issue -- similar to other companies -- is the fourth quarter, where guidance is coming down again," noted Longbow Research analyst Joshua Zaret.

The company expects fourth-quarter earnings to benefit from price increases for its printing paper and corrugated boxes, but cautioned that costs for wood, energy and transportation will continue to weigh.

Third-quarter net income was $217 million, or 51 cents a share, compared with a year-ago profit of $224 million, or 46 cents a share, which included a $185 million gain from the sale of U.S. forest lands.

Excluding items, the company earned 57 cents a share, in-line with Wall Street's expectations and above year-ago earnings of 45 cents a share.