MEMPHIS—International Paper on Tuesday reported third-quarter 2010 net earnings attributable to common shareholders totaling $397 million compared with $93 million in the second quarter and $371 million in the third quarter of 2009, according to a press release.

Quarterly net sales for IP, which earlier this year closed its Franklin paper mill and eliminated 1,100 jobs, were $6.7 billion compared with $6.1 billion in the second quarter and $5.9 billion in the third quarter of 2009.

The closing of the Franklin mill resulted in a second quarter, pre-tax charge of $111 million, including $46 million of accelerated depreciation charges and $36 million related to environmental reserves.

IP’s operating profits before special items were $752 million in the third quarter of 2010, up from $466 million in the second quarter and $443 million in the third quarter of 2009.

“Our paper and packaging businesses delivered strong results, which led to record earnings,” said John Faraci, chairman and chief executive officer. “We continued to realize our announced price increases, realize restructuring benefits, operate well and improve our mix of business, which led to strong margin expansion. We are well positioned to generate strong results in the fourth quarter and into 2011.”

Printing paper’s operating profits were $278 million versus $158 million in the second quarter. Earnings for North American printing papers represent the second best quarterly earnings on record. Results were positively impacted by favorable pulp and paper pricing, reduced fixed costs, fewer mill outages, bad debt recovery and increased shipments in the United States and Europe.

Industrial packaging operating profits rose to $332 million versus $193 million in the second quarter. North American operations generated record quarterly earnings, reflecting the realization of announced price increases for boxes and linerboard, fewer mill outages, improved input costs and continued strong mill operations.

Consumer packaging operating profits increased to $71 million compared with $49 million in the second quarter. North American coated paperboard business generated record quarterly earnings. Results benefited from higher volumes, further realization of announced price increases, and fewer maintenance outages.