May 17, 2011. /Lesprom Network/. AbitibiBowater has posted a net income of $30 million in its 1Q 2011 on sales of $1.185 billion. The 1Q result marks the company’s strongest operating performance in 4 years and the largest quarterly operating profit since the company was created in a merger, as ForestTalk reported. Sales increased $85 million, or 7.7%, from $1,100 million in the 1Q 2010 to $1,185 million in the 1Q 2011. The increase was primarily due to higher transaction prices for newsprint, coated papers, specialty papers, market pulp and wood products and higher shipments for coated papers, specialty papers and wood products, partially offset by lower shipments for newsprint and market pulp. AbitibiBowater’s strategy for the future includes focusing on grades that have and are expected to offer better margins and higher returns. Although North American newsprint demand is expected to continue to decline, world newsprint demand, excluding North America, is expected to grow by approximately 0.3% per year from 2010 to 2012, with growth being strongest in Asia, Latin America and the Middle East. The growth in many of the international markets is primarily the result of increased urbanization trends, a rapidly growing middle class, lower Internet penetration rates per capita versus developed countries, economic growth and rising literacy rates. Accordingly, AbitibiBowater will continue to focus on capitalizing on the growth of these markets. The location of certain of AbitibiBowater’s mills, which are on or near deep sea ports, allows the company the opportunity to serve these higher growth markets. AbitibiBowater also plans to aggressively focus on reducing their manufacturing costs through operational improvements at their sites and making focused capital investments to improve their cost competitiveness at our critical sites. The company plans to manage their capital spending carefully and plans to take advantage of funding opportunities under the Canadian Pulp and Paper Green Transformation Program on energy and other projects in Canada. Reducing debt and the associated interest charges is another one of AbitibiBowater’s primary financial goals. AbitibiBowater states in their earnings release, that they do believe there will be continued consolidation in the paper and forest products sector as they, as well as their competitors, plan to continue to explore ways to increase efficiencies and diversify customer offerings. The company believes consolidation could benefit AbitibiBowater by allowing the company to capture synergies and operate with a lower cost platform. Accordingly, from time to time, AbitibiBowater stated it may explore strategic opportunities to enhance their business and improve our returns.