May 09, 2007. /Lesprom Network/. Abitibi-Consolidated Inc. reported on May 8, 2007 a first quarter loss of $70 million, or $0.16 a share. This compares to a loss of $33 million, or $0.08 a share, recorded in the first quarter of 2006. The quarter's results include the following after-tax specific items: a gain of $29 million on the translation of foreign currencies mostly related to the company's long-term debt denominated in U.S. dollars, an $8 million favourable tax adjustment and a charge of $8 million for merger and integration-related costs. Although not a GAAP measure, the loss would have been $95 million, or $0.22 per share, before the impact of the above-noted and other specific items. This compares to a loss of $36 million, or $0.08 a share, in the first quarter of 2006. In the first quarter of 2007, the company posted an operating loss of $39 million before specific items, compared to an operating profit of $52 million in the first quarter of 2006. The newsprint segment achieved an operating profit of $5 million, while the commercial printing papers and wood products segments had operating losses of $9 million and $35 million respectively. The wood products segment includes a $7 million charge relating to inventory devaluation. Before specific items, the $91 million reduction in operating results in the first quarter of 2007 is mainly attributable to lower prices in the company's newsprint and wood products business segments, higher cost of products sold and lower sales volume for all segments. "Deteriorating conditions in most markets provided significant challenges for the Company during the quarter,” said John Weaver, Abitibi-Consolidated president and chief executive officer. “The situation does, however, underscore the strategic rationale and timing for our merger with Bowater. Together, our two companies will be stronger and better equipped to compete in the fiercely competitive global marketplace". Abitibi-Consolidated is a global leader in newsprint and commercial printing papers as well as a major producer of wood products, serving clients in some 70 countries from its 45 operating facilities. Abitibi-Consolidated is among the largest recyclers of newspapers and magazines in North America, diverting annually approximately 1.7 million tonnes of waste paper from landfills. It also ranks first in Canada in terms of total certified woodlands. Abitibi-Consolidated shares are traded on the Toronto Stock Exchange and on the New York Stock Exchange.