US$
Net income of $61 million, or $0.63 per diluted share
ACH sale was completed for net proceeds of approximately $300 million
Debt reduction of approximately $270 million
Net debt to equity ratio improved to 11%
AbitibiBowater Inc. recently reported net income for the second quarter of 2011 of $61 million, or $0.63 per diluted share, on sales of $1.2 billion. These results compare with a net loss of $297 million, or $5.15 per diluted share, on sales of $1.2 billion for the second quarter of 2010.
The net income for the second quarter, before certain special items, was $69 million, or $0.71 per diluted share, compared with a second quarter 2010 net loss before special items of $197 million, or $3.31 per diluted share. Second quarter 2011 special items, net of tax, consisted of the following: a $4 million gain related to foreign currency transactions, a $3 million charge related to closure costs, a $2 million gain related to asset sales, an $8 million charge for post-emergence expenses and a $3 million severance charge. A reconciliation of these items is contained in Note 7 to this release. The Company also benefited from a $44 million tax reserve adjustment in the quarter or $0.45 per diluted share.
"Our pricing for our pulp and paper products improved in the second quarter, and we completed our major annual maintenance at all our kraft pulp facilities," said Richard Garneau, President and Chief Executive Officer. "Although overall economic indicators are weak, I believe our focus on cost and debt reduction should yield improved financial results in the second half of the year."
