Oct 25, 2006. /Lesprom Network/. Abitibi-Consolidated Inc. reported on October 25 a third quarter loss of CAD 48 million, or CAD 0.11 a share. This compares to net earnings of CAD 99 million, or CAD 0.23 a share, recorded in the third quarter of 2005. For the first nine months of 2006, the company recorded net earnings of CAD 76 million, or CAD 0.17 a share, compared to CAD 5 million, or CAD 0.01 cent a share, in the same period of last year. Although not a GAAP measure, the third quarter loss before the impact of specific items was CAD 59 million, or CAD 0.13 per share. This compares to a loss of CAD 40 million, or CAD 0.09 a share, in the third quarter of 2005. Before specific items, the company posted an operating profit of CAD 3 million during the third quarter of 2006, with its Newsprint business making a positive contribution of CAD 40 million, while its commercial printing papers and wood products segments posted operating losses of CAD 4 million and CAD 33 million respectively. This compares with an overall operating profit of CAD 49 million in the same quarter of 2005. Before specific items, the CAD 46 million reduction in operating profit from continuing operations is mainly attributable to the strengthening of the Canadian dollar, higher cost of products sold per unit and lower sales volume. These were partially offset by higher prices in the company's two paper business segments and lower amortization. "The third quarter once again required decisive action on our part. We announced the idling of five sawmills, representing approximately 20% of our annual production capacity. We continue to progress with our previously announced IPO for an income fund that will hold a minority interest in all of the company's Ontario hydroelectric assets. We made important strides in reducing our SG&A costs and, in light of progress achieved to-date, we are confident in removing CAD 35 million of cost annually," said John Weaver, president and CEO. Two previously announced initiatives, the IPO for the Ontario hydroelectric income fund as well as the acquisition of the remaining interest in Augusta Newsprint Company, are expected to proceed in Q1 2007. Final settlement of the softwood lumber dispute is also an important milestone. The approximately USCAD 235 million of refunded deposits, expected to be received in the fourth quarter, will be targeted to debt reduction. 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 1.9 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.