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BOWATER REPORTS CONTINUING LOSS

 DARIEN, Conn., Jan. 21 /PRNewswire/ -- Bowater Incorporated (NYSE: BOW) today reported a net loss for both the fourth quarter and the year ended December 31, 1992.
 For the twelve months of 1992, the net loss totaled $82.0 million ($2.34 per share) on sales of $1.49 billion. This compared to net income of $45.6 million ($1.15 per share) on sales of $1.29 billion for the same period of 1991. Results for 1992 include the operations of Great Northern Paper, Inc., acquired by Bowater at the end of 1991, and cannot be compared directly with those for 1991.
 For the fourth quarter of 1992, the company incurred a net loss of $20.9 million ($.59 per share) on sales of $398.9 million, compared to income of $1.6 million ($.02 per share) on sales of $325.9 million for the same period of 1991.
 Included in 1992's net loss were non-recurring first quarter charges for an equipment write-off and a corporate restructuring and relocation. Also included was the effect of adopting two new accounting standards covering post-retirement benefits and income taxes.
 "Our fourth quarter operating results were equal to those of the third quarter, although we did not achieve the further improvement we were expecting," said A.P. Gammie, Chairman and Chief Executive Officer. "Newsprint transaction prices have increased since our August 1 reduction in discounts, but they still remain at unprofitable levels. Even so, we are pleased with the performance of our other uncoated groundwood grades and also with the reduced loss of the Communication Papers Group from the third quarter. Unfortunately, the currency problems and economic slowdown in Europe have resulted in a significant decrease in selling prices for our market pulp exports."
 Bowater has been plagued throughout the year with low selling prices for all its major products, due to a recession-induced lessening of demand combined with excess industry capacity. Also affecting this year's operating results were higher costs incurred at Great Northern Paper, Inc. to improve quality and bring their operations up to the standards of Bowater's other mills.
 "It appears that weak economic conditions will be with us for a while longer, particularly in Europe," Gammie said. "Even so, newsprint consumption for the first eleven months of 1992 increased 2.1 percent compared to the same period of 1991. There are many indicators that the economy is continuing to improve and we have noted early signs of a further pick up in newsprint demand. This should produce improvements in operating results by the fourth quarter of 1993 and beyond. Therefore, we expect 1993 to be better than 1992, but still a difficult year."
 Bowater Incorporated is a major manufacturer of newsprint, coated and uncoated groundwood publication papers and bleached kraft market pulp, and a converter of communication papers for computer forms and other business applications.
 Summary financial information follows in 000's (except per share information):
 Quarter Ended Twelve Months Ended
 Dec. 31, Dec. 31, Dec. 31, Dec.31,
 1992 (A) 1991 1992 (A) 1991
 Sales $398,850 $325,879 $1,493,869 $1,288,517
 Operating income (loss)
 $(12,468) $ 9,651 $ (74,108) $ 103,715
 Income (loss) before taxes,
 minority interests and
 cumulative effect of changes
 in accounting principles
 $(38,262) $ (688) $ (171,954) $ 68,735
 Cumulative effect of changes
 in accounting principles (D)
 $ - $ - $ 10,911 $ -
 Net income (loss)
 $(20,891) $ 1,556 $ (81,957) $ 45,589
 Earnings (loss) per share (B)
 Before cumulative effect of
 changes in accounting
 principles
 $ (0.59) $ 0.02 $ (2.64)(C) $ 1.15
 Cumulative effect of changes
 in accounting principles
 - - 0.30 -
 $ (0.59) $ 0.02 $ (2.34) $ 1.15
 Average Shares Outstanding
 36,264 35,951 36,141 35,880
 Segment Information:
 Sales -
 Pulp, Paper and related
 products
 $ 351,742 $264,196 $1,298,898 $1,033,687
 Communication papers
 52,273 61,743 207,523 254,890
 Eliminations
 (5,165) (60) (12,552) (60)
 $ 398,850 $325,879 $1,493,869 $1,288,517
 Operating income (loss) -
 Pulp, Paper and related
 products
 $ (7,174) $ 11,633 $ (46,138) $ 108,496
 Communication papers
 22 2,077 (2,277) 14,361
 Corporate expenses
 (5,316) (4,059) (20,693) (19,142)
 Restructuring charge
 - - (5,000) -
 $ (12,468) $ 9,651 $ (74,108) $ 103,715
 (A) 1992 results include Great Northern Paper, Inc., acquired on
 December 31, 1991.
 (B) Net income used in the calculation of earnings per share has
 been reduced by the dividend requirement of the LIBOR
 preferred stock.
 (C) Includes $(.30) in non-recurring charges for an equipment
 write-off $(.21) and the corporate restructuring $(.09).
 (D) Includes additional $1.0 million first quarter charge
 related to actuarial adjustments.
 -0- 1/21/93
 /CONTACT: SuAnne B. Aune, director-investor relations, 203-656-7253 (office), or 203-327-7558 (home), for Bowater Incorporated/
 (BOW)


CO: Bowater Incorporated ST: Connecticut IN: PAP SU: ERN

SH -- NY001 -- 7217 01/21/93 08:21 EST
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Date:Jan 21, 1993
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