By Euan Rocha

NEW YORK (Reuters) - International Paper (IP.N: Quote, Profile, Research) posted lower first-quarter earnings on Wednesday that fell short of Wall Street expectations as price increases failed to offset higher raw material costs and declines in printing paper shipments.

Longbow Research analyst Joshua Zaret said the results were disappointing and noted that operating earnings were below expectations in every business. "They came in below the (whole) range of analyst estimates, so that's pretty amazing and a big miss," he said.

Net income was $133 million, or 31 cents a share, from $434 million, or 97 cents a share, a year earlier.

Earnings from continuing operations, excluding one-time items, were 41 cents a share compared to 45 cents a share a year ago. Wall Street was expecting 51 cents a share, according to Reuters Estimates.

Net sales rose 8.6 percent to $5.67 billion, slightly above analysts' expectations of $5.60 billion.

The company's shares closed down 4.17 percent, or $1.14, at $26.17 on Wednesday on the New York Stock Exchange.

COSTS WEIGH

Higher costs for chemicals and energy were the main drag in the quarter, but a weakening U.S. economy and operational issues at certain mills, also weighed on results, Longbow's Zaret said.