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BOWATER REPORTS FIRST QUARTER LOSS

 BOWATER REPORTS FIRST QUARTER LOSS
 DARIEN, Conn., April 16 /PRNewswire/ -- Bowater Incorporated


(NYSE: BOW) reported a net loss for the first quarter of 1992 of ($17.7) million (($0.51) per share) on sales of $372.8 million. Net income for the 1991 first quarter was $16.7 million ($0.43 per share) on sales of $324.5 million. 1992 results include the operations of Great Northern Paper, Inc., which was acquired by Bowater at the end of 1991, and should not be compared directly with those for 1991.
 During the quarter, the company took non-recurring charges against income of $0.21 per share to cover an equipment write-off, $0.09 per share for a previously announced corporate restructuring and relocation to Greenville, South Carolina by mid-1993, and $0.57 per share for the adoption of accounting standard SFAS No. 106 covering employee postretirement benefits. The company also adopted accounting standard SFAS No. 109 relating to deferred taxes which had the effect of adding $0.90 per share to income.
 "Prices in all our product lines except market pulp continued to decline from the previous quarter," said A.P.Gammie, chairman and chief executive officer. "We do not see any newsprint price improvement before the third quarter, but consumption, based on the first two months, appears to have stabilized while exports have remained healthy. The bright spot is in market pulp where prices firmed in both the fourth quarter of 1991 and the first quarter of this year."
 What happens in the balance of 1992 will depend on how the U.S. economy responds to the various stimuli now being applied by the federal government, Gammie said. "We have used our first months of ownership to begin to rebuild Great Northern Paper's order book. This process should be easier once the promise of its new recycling plant, for which we will break ground next week, becomes better known. And when the market does improve, we will benefit from a larger and more diverse product base."
 Bowater Incorporated is a major manufacturer of newsprint, coated and uncoated groundwood publication papers, bleached kraft market pulp and a converter of communications papers for computer forms and other business applications.
 Summary financial information follows in 000's (except per share amounts).
 BOWATER INCORPORATED
 (in 000's except per share amounts)
 Quarter Ended
 March 28, March 30,
 1992 (A) 1991
 Sales $ 372,836 $ 324,488
 Operating income (loss) $ (22,111) $ 36,409
 Income (loss) before taxes, minority
 interests and cumulative effect of
 changes in accounting principles $ (54,626) $ 27,302
 Cumulative effect of changes in
 accounting principles $ 11,930 $ -
 Net income (loss) $ (17,727) $ 16,737
 Earnings (loss) per share-(B) (C)
 Before cumulative effect of changes in
 accounting principles $ (0.84) $ 0.43
 Cumulative effect of changes in
 accounting principles .33 -
 $ (0.51) $ 0.43
 Average shares outstanding 36,070 35,784
 Segment information:
 Sales -
 Pulp and Paper and related products $ 319,649 $ 256,192
 Communication papers 54,088 68,296
 Eliminations (901) -
 $ 372,836 $ 324,488
 Operating income (loss) -
 Pulp and Paper and related products $ (13,698) $ 37,428
 Communication papers 1,415 3,872
 Corporate expenses (4,828) (4,891)
 Corporate restructuring charge (5,000) -
 $ (22,111) $ 36,409
 (A) 1992 results include Great Northern Paper, Inc., acquired on Dec. 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).
 -0- 4/16/92
 /CONTACT: SuAnne B. Aune, director-investor relations, 203-656-7253 (office), or 203-327-7558 (home)/
 (BOW) CO: Bowater Incorporated ST: Connecticut IN: PAP SU: ERN


SH -- NY009 -- 9085 04/16/92 08:39 EDT
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Date:Apr 16, 1992
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