Abitibi-Consolidateds second-quarter net earnings rose 77% to 49.4m (CAD$108m) as a result of cost reductions, synergy programmes and capacity closures. Sales rose too, from 677m to 707m.
During the quarter the Canadian-based newsprint producer announced it would buy out Hansol, one of its partners in Pan-Asia Paper Company, for 80m, increasing its stake from 33% to 50%. It has also permanently removed 188,000 tonnes of newsprint capacity from its Kenora, Ontario mill (PrintWeek, 1 June).
Abitibi shipped 314,000 tonnes fewer of newsprint on a pro forma basis during the quarter.
President and chief executive John Weaver said the groups goals were to generate enough cash to continue paying down debt.
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