clarinews@clarinet.com (01/19/90)
_ _A_t_t_e_n_t_i_o_n_:_ _E_d_i_t_o_r_s_ _a_n_d_ _p_u_b_l_i_s_h_e_r_s DARIEN, Conn. (UPI) -- Newsprint manufacturer Bowater Inc. Thursday said fourth-quarter net income was $32.2 million, or 86 cents a share, down 29 percent from $45.5 million, or $1.22 a share, in the fourth quarter of 1988. Sales for the period were $367.6 million, up slightly from $367.3 million a year ago. Net income for the full year was $144.6 million, or $3.86 a share, down 12 percent, from $164.3 million, or $4.37 a share, reported in full year 1988. Sales for the 12 month period were $1.449 billion, establishing a new high for the sixth consecutive year and up 2.8 percent from sales of $1.41 billion the previous year, officers said. ``Although there were signs of a slow-down towards year-end, Bowater produced its second best net income ever in 1989,'' said company Chairman A. P. Gammie. ``These results were achieved despite special charges which included pulp mill start-up costs, timber losses due to Hurrican Hugo and the write-off of a feasibility study for coated paper expansion,'' Gammie added. Bowater said newsprint consumption in the United States was almost unchanged for fourth quarter 1989 and for the full year, compared with the prior year periods, while company shipments improved 5 percent for the quarter and 3.7 percent for the year. ``However there was no relief from the price discounting reported in recent quarters,'' Gammie said. Start-up costs for two new pulp mills also continued to reduce Bowater's newsprint operating incme, which was $87.9 million for 1989, compared with $164.4 million in 1988, the company said. ``Looking forward to the 1990s, we expect the current overcapacity in newsprint to be with us for two or more years, but it is likely to be less severe than many forecasters predict,'' Gammie said. Demand for coated paper was forecast to remain at a healthy level, while several planned new machines either have been postponed or cancelled, the chairman said. ``Market pulp will not be as strong because of softening demand, but we will expect to report excellent profits,'' Gammie said. ``The company's leading position and efficient operations will keep it competitive in communication papers.''