AbitibiBowater Inc.recently reported net income for the first quarter of 2011 of $30 million, or $0.31 per diluted share, on sales of $1.2 billion. These results compare with a net loss of $500 million, or $8.68 per diluted share, on sales of $1.1 billion for the first quarter of 2010.
The net income for the first quarter, net of certain special items, was $24 million, or $0.25 per diluted share, compared with a first quarter 2010 net loss before special items of $301 million, or $5.22 per diluted share. First quarter special items, net of tax, consisted of the following: a $29 million gain related to foreign currency changes, a $6 million charge related to closure costs, a $1 million gain related to asset sales, an $8 million charge for post-emergence expenses, a $4 million impact of fair valuing inventory in fresh start accounting and a $6 million severance charge. A reconciliation of these items is contained in Note 7 to this release.
"Our first quarter since emergence resulted in net income and positive cash flow from operations, despite some ongoing post-emergence costs," said Richard Garneau, President and Chief Executive Officer. "Our operating results for the quarter were negatively impacted by the strong Canadian dollar, higher energy and recycled fiber costs, and market-related production curtailments in a seasonally weak quarter. Looking to the balance of the year, we expect improvement as a result of the implementation of previously announced price increases for our products, efficiency gains in our manufacturing costs and seasonally stronger demand."
