Abitibi-Consolidated reported increased earnings and sales for the quarter, compared to figures the same time last year. For the second quarter earnings stand at $108 million on sales of $1.5 billion. This compares favorably with earnings of $61 million on sales of $1.5 billion.
The company attributed the improved earnings to cost reductions, the closing of high-cost operations, and improved operations of its various mills.
During the quarter the company also was able to complete its newsprint capacity rationalization, which pulled 400,000 metric tons of capacity from the market. Of the amount 188,000 metric tons was permanently removed from the company’s Kenora, Ontario mill.
While Abitibi's profits rose on better year-over-year prices for newsprint, prices have come under downward pressure in recent months because of rapidly declining consumption on eroding newspaper advertising linage, especially in North America.
Earlier this spring, producers failed to implement a $50-a-metric ton increase in eastern North American prices beyond the prevailing $610-a-metric ton level. Abitibi rolled back a $25-a-metric price hike on July 1.Latest from Recycling Today
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