ABH (TSX, NYSE)
US$
MONTREAL, Nov. 6 /CNW Telbec/ - This morning, Abitibi-Consolidated Inc.
and Bowater Incorporated announced their respective third quarter 2007
earnings. Separately, AbitibiBowater Inc. has released the Company's key
business priorities. They will be discussed in more detail during the
management-hosted quarterly conference call to be held today at
10:00 a.m. (Eastern).The following specific priorities have been established:
- The Company originally announced its expectation to realize in excess
of $250 million in annualized synergies over the next two years. The
Company now expects to achieve this targeted run rate by the end of
the first quarter of 2009.
- A debt-reduction target of $1 billion over the next three years will
enhance the global competitiveness of the Company.
- AbitibiBowater will demonstrate its superior customer focus by
providing access to a broad range of forest products and best-in-class
customer service, with an unsurpassed commitment to environmental
sustainability.Over the next 30 days, AbitibiBowater's Executive Team will complete a
strategic review of each business and develop complete action plans for
achieving these business priorities, inclusive of sales and marketing plans.
Combination of Abitibi-Consolidated Inc. and Bowater Incorporated
On January 29, 2007, Abitibi-Consolidated Inc. and Bowater Incorporated
announced the execution of a definitive agreement to combine in an all-stock
merger of equals. On October 29, 2007, the two companies announced the
completion of the transaction.
AbitibiBowater produces a wide range of newsprint and commercial printing
papers, market pulp and wood products. It is the eighth largest publicly
traded pulp and paper manufacturer in the world. Following the required
divestiture agreed to with the U.S. Department of Justice, AbitibiBowater will
own or operate 31 pulp and paper facilities and 35 wood products facilities
located in the United States, Canada, the United Kingdom and South Korea.
Marketing its products in more than 80 countries, the Company is also among
the world's largest recyclers of newspapers and magazines, and has more
third-party certified sustainable forest land than any other company in the
world. The Company's shares trade under the stock symbol ABH on both the New
York Stock Exchange and the Toronto Stock Exchange.
Forward-Looking Statements
--------------------------
Statements in this news release that are not reported financial results
or other historical information are "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995. They include,
for example, statements about our ability to realize synergies from the
combination of Abitibi-Consolidated Inc. and Bowater Incorporated, the
anticipated timing of and the progress of integration efforts related to the
combination, our ability to reduce our debt, our competitive position, our
ability to maintain and improve customer service levels, and our business
outlook, strategies and assessment of market conditions. Forward-looking
statements may be identified by the use of forward-looking terminology such as
the words "expect", "will", "believe", "anticipate", and other terms with
similar meaning indicating possible future events or actions or potential
impact on the business or stockholders of AbitibiBowater.
These forward-looking statements are not guarantees of future
performance. They are based on management's assumptions, beliefs and
expectations, all of which involve a number of business risks and
uncertainties that could cause actual results to differ materially. These
risks and uncertainties include, but are not limited to, negative industry
conditions and further growth in alternative media, actions of competitors,
Canadian dollar exchange rates, the demand for higher margin coated and
uncoated mechanical paper, and the costs of raw materials such as energy,
chemicals and fiber. In addition, with respect to forward-looking statements
relating to the combination of Abitibi-Consolidated and Bowater, the following
factors, among others, could cause actual results to differ materially from
those set forth in the forward-looking statements: the risk that the
businesses will not be integrated successfully or that the anticipated
improved financial performance, product quality and product development will
not be achieved; the risk that other combinations within the industry or other
factors may limit our ability to improve our competitive position; the risk
that the cost savings and other expected synergies from the transaction may
not be fully realized or may take longer to realize than expected; and
disruption from the transaction making it more difficult to maintain
relationships with customers, employees or suppliers. Additional factors are
listed from time to time in AbitibiBowater's filings with the Securities and
Exchange Commission and the Canadian securities regulatory authorities,
including those factors contained in the company's registration statement on
Form S-3 filed on October 29, 2007, under the caption "Risk Factors." All
forward-looking statements in this news release are expressly qualified by
information contained in the company's filings with the Securities and
Exchange Commission and the Canadian securities regulatory authorities.
AbitibiBowater disclaims any obligation to update or revise these
forward-looking statements.
Any information about industry or general economic conditions contained
in this news release is derived from third-party sources that the company
believes are widely accepted and accurate; however, the company has not
independently verified this information and cannot assure its accuracy.
