Abitibi Reports Loss for Quarter

Abitibi-Consolidated Inc. reported a fourth-quarter loss from continuing operations. However, the company noted the loss narrowed over the year earlier loss.

Abitibi said its fourth quarter net loss from continuing operations was C$5 million, compared with a net loss of C$36 million in the year earlier quarter.

The company said its 1999 quarter figure did not include after-tax charges, including a C$64 million charge relating to the permanent closure of the company's newsprint mill in Chandler, Quebec.

For the full 1999 year, Abitibi said its net loss from continuing operations was C$65 million before unusual items. In the 1998 quarter, Abitibi posted a net loss from continuing operations of C$28 million.

Abitibi said the 1999 year net loss stemmed from restructuring charges related to a 10 percent reduction in its workforce, the closure of the Chandler mill and other paper making machines, lower-than-average paper prices throughout most of the year, and litigation settlement costs.

Year sales were C$4 billion versus C$3.3 billion.

Abitibi said that in total, it removed 450,000 metric tons of paper capacity and reduced its newsprint and value-added manufacturing costs by C$10 a metric ton.