Abitibi-Consolidated returned to profit in 3Q 2007 with net earnings of CAD 54 million

Nov 07, 2007. /Lesprom Network/. Abitibi-Consolidated Inc., a wholly-owned subsidiary of AbitibiBowater Inc., reported on November 6, 2007 third quarter 2007 net earnings of CAD 54 million, or CAD 0.12 a share, compared to a loss of CAD 48 million, or CAD 0.11, a share in the third quarter of 2006. For the nine-month period ending September 30, 2007, the company recorded net earnings of CAD 132 million, or CAD 0.30 a share, compared to net earnings of CAD 76 million, or CAD 0.17 a share, for the same nine-month period last year. Although not a GAAP measure, the third quarter results before the impact of specific items would have been a loss of CAD 126 million, or CAD 0.28 per share, compared to a loss of CAD 54 million, or CAD 0.12 a share, in the third quarter of 2006. The quarter's results included the following after-tax specific items: a gain of CAD 168 million on translation of foreign currencies, the positive impact of a CAD 24 million gain on the disposal of a portion of the company's timberlands located in Georgia and South Carolina, as well as a CAD 7 million expense related to the recently completed merger with Bowater Incorporated. In the third quarter of 2007, the company posted an operating loss of CAD 85 million before specific items, compared to an operating profit of CAD 10 million in the third quarter of 2006. The Newsprint, Commercial Printing Papers and Wood Products segments had operating losses of CAD 19 million, CAD 38 million and CAD 28 million respectively. Before specific items, the CAD 95 million reduction in operating results in the third quarter of 2007 was mainly attributable to lower prices in the company's three segments, the unfavourable impact of a stronger Canadian dollar and the devaluation of finished products inventories. Third quarter versus second quarter 2007 Sales of CAD 999 million vs. CAD 1.06 billion (CAD 1.18 billion in Q3 2006) EBITDA of CAD 21 million vs. CAD 42 million (CAD 120 million in Q3 2006) U.S. newsprint prices lower by approximately $23 per tonne Newsprint costs lower by CAD 42 per tonne Demand for uncoated groundwood papers continues to improve Due to a year-over-year decrease of nearly 31% in U.S. housing starts, the company reduced its wood products production during the third quarter. "The results for the quarter are a reflection of the challenging market conditions and impact of the Canadian dollar. Our merger with Bowater is a first step in meeting these challenges," said John W. Weaver, Abitibi-Consolidated Inc. president and chief executive officer. "Now that the merger has closed, we are moving swiftly to fully integrate the company and implement our new business priorities," added Weaver. AbitibiBowater produces a wide range of newsprint and commercial printing papers, market pulp and wood products. It is the eighth largest publicly traded pulp and paper manufacturer in the world. Following the required divestiture agreed to with the U.S. Department of Justice, AbitibiBowater will own or operate 31 pulp and paper facilities and 35 wood products facilities located in the United States, Canada, the United Kingdom and South Korea. Marketing its products in more than 80 countries, the company is among the world's largest recyclers of newspapers and magazines, and has more third-party certified sustainable forest land than any other company in the world. The company's shares trade on both the New York Stock Exchange and the Toronto Stock Exchange.