By: E&P Staff
Montreal-based AbitibiBowater, North America’s largest newsprint producer, said it hopes to exit restructuring in October and see profits of more than US$1.5 billion over the next four years.
AbitibiBowater has cut 6,000 jobs and much of its capacity by closing mills. Creditors are due to vote Sept. 14 on a restructuring plan that would allow the company to emerge from its year-and-a-half of bankruptcy protection on Oct. 14.
From an expected $427 million loss in 2010, the company is projecting earning of $295 million next year, $387 million in 2012,$384 million in 2013 and $445 million in 2014, according its filings in Quebec Superior Court, reported by The Canadian Press.
It forecasts 14.5% revenue growth, to $5.34 billion in 2011, from $4.66 billion in 2010, with revenues stable through 2014.
AbitibiBowater said it expects an enterprise value of $3.7 billion, including $1.25 billion in debt, with its new stock valued at $2.4 billion.
Last month, AbitibiBowater said second-quarter losses of $297 million were down from $510 million a year earlier. Revenues were up 14% to $1.18 billion from $1.04 billion on higher prices for its products, with the exception of specialty papers.
The higher Canadian dollar reduced earnings by $68 million.