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Abitibi Posts Operating Loss of $85 Million in Third Quarter

By 250 News

Wednesday, November 07, 2007 09:37 AM

Abitibi-Consolidated is reporting third quarter net earnings of $54 million, compared to a loss of $48 million in the third quarter of 2006.

The net earnings however came as a result of a gain of $168 million on translation of foreign currencies, a $24 million dollar gain on the disposal of a portion of the company’s timberlands in South Carolina and Georgia and $7 million from the expense in the merger with Bowater. 

In the third quarter of 2007, the company posted an operating loss of  $85 million before specific items, compared to an operating profit of $10 million in the third quarter of 2006. The Newsprint, Commercial Printing Papers and Wood Products segments had operating losses of $19 million, $38 million and $28 million respectively.

Abitibi operates a paper mill in Mackenzie as well as 2 saw mills and 2 planer mills. The company has 45 other operations in Canada  in Quebec, Ontario, and Newfoundland.


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Comments

...and so it goes!
I would seriously hope to see some leadership from Mr.Campbell and the rest of the party animals in Victoria in regards to what is happening to the forest industry throughout the north.
(actually, everywhere else too)
Instead, we are getting all the Olympic retoric and downplayed gross cost overruns on such useless venues as the Trade Center in Vancouver!
In case you have forgotten Gordo,we are still up here doing our best with a bad situation!
What will the lower mainland do without the tax dollars from the north??
Time for a shake-up!
Cancell the olympics. With what is looming on the horizon for the North Central Interior and BC in general, its the financially responsible thing to do.
I was wondering.....can a province seek bankruptcy protection???
Interesting question Imorg!
I doubt that will happen but it could if the northern part of the province crashes..and it is starting to look like we are on a major downturn unlike we have seen in years.
But,the boys in Victoria just lie about that anyway.
They are pretty sure that we will be so impressed with budget surpluses,Olympic hoopla and the token freebees they throw our way, that we will forget about the big issues like:
Lousy heathcare,seniors issues,embarrassing cost overruns on the Convention Center in Vancouver,(that they tried to avoid mentioning),Olympic costs that we are not being told about for security etc.
Wait for it!
The cracks are only just starting to show,there WILL be more!
They constantly tell us how good the B.C.economy is and that is true for some, but only if you live in the lower mainland!
It's not so great up here for many,particularly in the forestry/sawmilling sector.
And when the Olympics are done,so is the booming economy, and even the lower mainland will hurt.
But nobody wants to hear that.
Watch what happens to the housing market that the Real Estate pumpers and construction industry seems to pretend will last forever.
It won't and when the interest rates start to rise,watch what happens to all those people who are paying those ridiculous prices.
Poof!

andy, just what would you have the government do? legislate a pick up in US housing? Pull a skeena Cellulose and bail out the saw mills? If you are looking for government, any government, to solve all our problems, you will always be disapointed.
as for the Olympics, there gonna happen, get over it.
The government can do lots of things but they won't, and we know all that.
They can cut stumpage rates,tax structures,fuel taxes,etc.etc.etc.
And they CAN offer some sort of financial assistance to these smaller lumber companies if and when they end up in trouble.
It is about jobs, and this is not the same as Skeena Cellulose which two different governments screwed up in the first place!
The important thing here is to be aware and prepared,which by the way,they are not.
Instead,they just don't care.
Too damn busy pumping up the Olympics and patting themselves on the back for the great job they are doing with the B.C.economy.
Tell that to the guy who can't get a Cat Scan for 3 or 4 months when he needs it now!
Tell that to the trucker whose logging truck won't work until spring, if he is lucky!
Tell that to the guy with a wife and 3 kids who can't find a place to live on the lower mainland that doesn't take every cent he earns.
Which by the way,has much to do with the coming Olympics that has help drive the cost of rent sky high.
But hey,you are right dow7500...the Olympics WILL happen, unfortunately there is a very good chance it won't be quite as pretty as some would like us all to think.
That money could have been better spent on infrastructure,healthcare,education,low income housing,on and on.
And there are many who will remember that come the next election.
Andyfreeze, I think the Government can do some of the things you mentioned (maybe along with dough for retraining people impacted by this crisis), however, I don't think cash bailouts are the answer. Investments in infrastructure and moves to try and diversify the economy are the way to go IMHO and I think the efforts have been there in those regards.

I just hope that people aren't forgetting the role that their personal responsibility plays in this situation. It's an awfully dangerous plan to assume that the Government will be there to take care of you when that time comes.

Funny thing, I was counting vehicles the other day and without a word of a lie, I saw 8-10 new 1 ton diesel 4x4's for every new 1/2 ton. I've also seen more new Alicraft's running around town than I can ever remember. I somehow doubt these toys are being purchased by call center employees and yet I have to wonder why the heck are people (many of whom are very likely employed in the forestry industry) spending this type of money when we all know what's coming? It's pure madness.
I agree NMG,that cash bailouts are not the answer for the most part.
Re-training is in fact the best way to go, but we could end up with one hell of a lot of people to re-train!
I think it there will be cases where funding can be advanced to some of the smaller companies under certian circumstances,but not for the big guns.
They don't need it, but they will take it anyway.
And if they DO need it,they are a BAD investment and BAD businessmen.
I also completely agree that people need to start living within the lines and stop spending like there was no tomorrow coming!
What IS that?
I personally know people who drive a new truck,the wife has a near new SUV and there is a nice boat in the yard too.Oh ya,the Quads...2 of them, and a couple of sleds as well.
I also know that they don't have a dime in any investments and struggle to get from payday to payday and nothing is paid for!
Did I mention the mortgage?
If ANYTHING goes wonky at work they are toast,but they really don't think that will happen...?
Your right,it IS madness!