By: E&P Staff Bowater Inc. reported a net income of $0.9 million, or $0.02 per diluted share, on sales of $837 million for Q1 of 2005. During the same period last year, the company reported a net loss of $32.5 million, or $0.57 per diluted share, on sales of $745.3 million.
"Pricing for Bowater's major paper grades continues to improve," said Arnold M. Nemirow, chairman, president and CEO, in a statement. "I expect this trend to support better financial results throughout the year."
Bowater's average transaction price for newsprint rose $7 per metric ton in Q1 compared to Q4 of 2004. During the quarter, the company's average operating costs increased by $11 per metric ton primarily due to higher energy costs. In Q1, Bowater curtailed approximately 40,000 metric tons of newsprint production for maintenance and market related reasons. Inventories increased 17,000 metric tons primarily to serve export customers.
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