Bowater Posts Loss for Quarter

Bowater Inc. reported financial results for the fourth quarter and the full year 2002. Bowater reported a net loss of $66.6 million on sales of $666.3 million for the fourth quarter. These results compare with net income of $16 million on sales of $705.4 million in the fourth quarter of 2001.

Before special items, the net loss for the fourth quarter of 2002 was $43.7 million, compared with the 2001 fourth quarter net loss before special items of $36.1 million.

In 2002, Bowater had a net loss of $142.4 million. This compares with net income of $70.5 million in 2001.

The company's average newsprint price increased by $15 per metric ton in the fourth quarter compared to the third quarter 2002. Bowater's average operating costs per metric ton for newsprint decreased by 4 percent in 2002 compared to 2001. The company curtailed 83,000 metric tons of newsprint production in the fourth quarter, continuing to match production to orders.

Total newsprint production curtailments for last year were about 400,000 metric tons compared to about 345,000 metric tons in 2001. Based on improving fundamentals.

Demand for coated groundwood and specialty grades was strong in the fourth quarter; however, pricing was flat compared to the third quarter of 2002. Bowater's average operating costs per short ton for coated groundwood and specialty grades decreased by 7 percent in 2002 compared to 2001.

The company's average market pulp price decreased by $20 per metric ton in the fourth quarter compared with the third quarter. Bowater's average operating costs per metric ton for market pulp were reduced by 7 percent in 2002 compared to 2001. Based on improving fundamentals, Bowater announced a $20 per metric ton market pulp price increase in North America and a $40 per metric ton market pulp price increase in Europe effective February 1, 2003.