AbitibiBowater Projects Profit of $1.5 Billion over Four Years

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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.

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