Bowater Revises Gains On Timberland Sales.Business Editors Bowater Incorporated (NYSE NYSE See: New York Stock Exchange : BOW) announced today that as a result of a mathematical error in a computer model used for calculating the gain on the sale of timberlands, the company will reduce previously reported after tax gains on two timberland sales, by $2.7 million, or $0.05 per diluted share, for the fourth quarter of 2001, and by $2.1 million, or $0.04 per diluted share, for the first quarter of 2002, representing approximately 5% of the total gain on each transaction. These changes will result in a reduction of Bowater's reported net income for the fourth quarter of 2001 and the first quarter of 2002. However, the net loss before asset sales and foreign currency exchange (as set forth below) remains unchanged.
Q401 Earnings Per Diluted Share
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Original Revised Change
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Reported Net Income $ 0.33 $ 0.28 $ (0.05)
Asset Sales (Gain) (0.89) (0.84) (0.05)
Currency Exchange (Gain) (0.07) (0.07) 0.00
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Net Loss Before Asset
Sales and Exchange $ (0.63) $ (0.63) $ 0.00
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Q102 Earnings Per Diluted Share
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Original Revised Change
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Reported Net Income $ 0.22 $ 0.18 $ (0.04)
Asset Sales (Gain) (0.78) (0.74) (0.04)
Currency Exchange (Gain) (0.02) (0.02) 0.00
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Net Loss Before Asset
Sales and Exchange $ (0.58) $ (0.58) $ 0.00
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The mathematical error, which has been reported to the audit committee of the board of directors, involved the use of a monthly discount rate instead of the appropriate quarterly or semi-annual discount rates in calculating the timberland gains. Bowater will file amendments to its 10-K for the year ended December 31, 2001 and 10-Q for the quarter ended March 31, 2002 to reflect the foregoing reduction in reported income for these two fiscal periods. Bowater Incorporated, headquartered in Greenville, SC, is a global leader in newsprint. In addition, the company makes coated and uncoated groundwood papers, bleached kraft pulp and lumber products. The company has 12 pulp and paper mills in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , Canada and South Korea and 13 North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. sawmills that produce softwood softwood Timber obtained from coniferous trees (mainly of the pine and fir families). With the exception of bald cypress, tamarack, and larch, softwood trees are evergreens. and hardwood lumber. Bowater also operates two facilities that convert a groundwood base sheet to coated products. Bowater's operations are supported by approximately 1.5 million acres of timberlands owned or leased in the United States and Canada and 33 million acres of timber cutting rights in Canada. Bowater is one of the world's largest consumers of recycled newspapers and magazines. Bowater common stock is listed on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. , the Pacific Exchange and the London Stock Exchange London Stock Exchange London marketplace for securities. It was formed in 1773 by a group of stockbrokers who had been doing business informally in local coffeehouses. . A special class of stock exchangeable into Bowater common stock is listed on the Toronto Stock Exchange Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension : BWX). All amounts are in U.S. dollars. Statements in this news release that are not reported financial results or other historical information are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. They include, for example, statements about our business outlook, assessment of market conditions, strategies, future plans, future sales, prices for our major products, inventory levels, capital spending capital spending Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. and tax rates. These forward-looking statements are not guarantees of future performance. They are based on management's expectations that involve a number of business risks and uncertainties, any of which could cause actual results to differ materially from those expressed in or implied by the forward-looking statements. The risks and uncertainties relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the forward-looking statements in this news release include those described under the caption "Cautionary Statement Regarding Forward-Looking Information" in Bowater's annual report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December 31, 2001 and, from time to time, in Bowater's other filings with the Securities and Exchange Commission. |
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