Bowater Loses $32.3 Million

By: (AP) Despite production cutbacks and increased prices, Bowater Inc. reported a third quarter loss Tuesday of $32.3 million and cut 250 to 300 jobs, or about 3% of its work force.

The paper maker also will try to lower manufacturing costs as part of an effort to save an estimated $75 million, Chief Financial Officer David Maffucci said.

"We will come out with much more specifics later on," he said.

The loss of 57 cents per share compares with a net loss of $1.8 million, or 4 cents per share, in the year-earlier period.

Included in the 2002 loss is a $3 million gain related to asset sales and a foreign exchange gain of $10.1 million. Before these two items, the net loss for the quarter came to 80 cents per share.

Analysts surveyed by Thomson First Call had expected a loss of 88 cents per share on that basis.

Bowater had $643.8 million in sales in the quarter ended Sept. 30, compared with sales of $558.8 million in the same period a year ago.

Shares in Bowater were down $1.21 at $36.60 in midday trading on the New York Stock Exchange.

The nation's second largest maker of newsprint increased those prices by $50 per metric ton in August and pulp prices by $20 per metric ton. The company also slashed newsprint and pulp production.

Chief executive Arnold M. Nemirow said the moves didn't solve the company's problems, prompting layoffs and further cost-cutting measures. "The impact of a weak economic recovery on our financial performance necessitates even more aggressive actions than we have taken to date," he said.

For the first nine months of the year, Bowater reported a loss of $75.8 million, or $1.33 per share, on sales of $1.91 billion. That compares with a profit of $54.5 million, or $1.05 per share, on sales of $1.75 billion for the year-earlier period.