Bowater Sees Loss for Quarter
Bowater Incorporated reported net income for the first quarter of $12.3 million on sales of $622 million. These results compare with net income of $37.7 million on sales of $604.9 million in the first quarter of 2001. Included in the 2002 net income is a $44.6 million gain related to asset sales, and a $1.3 million gain resulting from foreign currency changes.
During the first quarter Bowater's average selling prices of newsprint and coated groundwood paper declined by 9 percent and 8 percent, respectively, compared to the fourth quarter of 2001. The average selling price for market pulp improved slightly quarter to quarter, and Bowater has informed its customers that it will raise the transaction prices $30 per metric ton on all grades of market pulp effective May 1.
In the first quarter, Bowater curtailed market pulp production by 9,000 metric tons, and newsprint production by 70,000 metric tons, excluding the 90,000 annual metric tonnage permanently eliminated by the closure of No. 1 paper machine at Coosa Pines, Ala.
In March, Bowater started up its second Nuway coating facility in Tennessee where production and quality are on schedule. Annual capacity of this facility is approximately 95,000 short tons of coated paper, which will consume 70,000 metric tons of newsprint production.
The newsprint industry has been struggling for the past several quarters with slowing demand and an oversupply of finished product on the market. Despite significant downtime taken, finished product prices have steadily declined over the past year.
Cascades Sees Profits
Cascades Inc. reported net earnings of $55 million for the first quarter compared to restated net earnings of $9 million for the same period in 2001.
Net sales increased by 9 percent during the first quarter amounting to $801 million compared to $733 million for the same period last year. Earnings before interest, taxes, depreciation and amortization amounted to $105 million for the period, compared to $79 million a year earlier, representing a 33 percent increase.
Excluding unusual items, net earnings for the first quarter of 2002 were $36 million.
Laurent Lemaire, president and CEO, stated: "For the third consecutive quarter, our net earnings excluding unusual items are at record levels. To me this is the best evidence that the strategies put in place in recent years were the right ones. Our top line and EBITDA growth has been over 14% for the last ten years and we today enjoy one of the best returns on equity of the North American pulp and paper industry.