Although sales were up to 2.9bn for the year from 2.7bn in 2004, operating profit dropped from 107.7m to the 78.5m loss.
Restructuring charges of 133.5m for two mills in Muskegon in Michigan, US and Usutu in Swaziland also affected pre-tax profit figures.
Sappi chief executive Jonathan Leslie said recent events had adversely affected the firm's profitability.
"Input costs, especially energy and chemicals, escalated still further due in part to the hurricanes in the US. There were no paper price increases to offset these higher costs," he said.
However, he added that Sappi's market share in Europe had risen in the last quarter after attempts to raise prices in the Q3 had resulted in the loss of volumes.
Sappi reports 78m pre-tax loss
Hurricanes, high costs and low paper prices have hit Sappis full-year results, as the South African paper manufacturer posted a 78.5m ($137m) pre-tax loss.
