Abitibi Consolidated Inc. reported a second quarter loss today of $43 million. This compares to a loss of $79 million recorded the same time last year.
The company posted a total operating profit of $69 million during the second quarter of 2005, with each of its three business segments making positive contributions. This compares with an operating profit of $51 million in the same quarter of 2004. The major difference year-over-year was improved paper pricing, offset by a stronger Canadian dollar, higher manufacturing and distribution costs.
"The strategic review begun at the end of last year is now complete," said John Weaver, president and CEO. "We are moving rapidly to implement these decisions. Concrete actions are being taken as we cannot let our timetable be extended or our plans sidetracked."
Steps the company is taking include the following:
· Permanently closing its Stephenville, Newfoundland newsprint mill by this October. The closure will remove about 194,000 metric tons of newsprint from the market.
· In Grand Falls, Newfoundland one 60,000-metric ton machine will be permanently closed.
· At the company’s Kenora, Ontario facility, one machine will be permanently closed this October, removing 90,000 metric tons of newsprint capacity. At the same time, the mill's other machine, with an annual production capacity of 150,000 metric tons of newsprint, will be idled for an indefinite period. "
· Fort William and Northwestern Ontario Woodlands. The process to sell the 150,000-tonne mill as well as 500,000 acres of nearby timberland is well underway. The Company anticipates completion before year-end.
· In Lufkin, Texas, as announced in the first quarter, the company is exploring several alternatives to re-launch the mill as a coated groundwood producer. Talks are ongoing with potential paper and energy partners.