Evans new AbitibiBowater chair

AbitibitiBowater Inc. will have a new chairman starting in February.

Richard Evans, the retiring chief executive officer of Rio Tinto Alcan, will become chair of the pulp and paper company on Feb. 1, the firm announced Wednesday, the same date he will hand over Rio Tinto's CEO reins to Jacynthe Côté.

"We are fortunate to have someone of the calibre of Dick Evans to assume the chairmanship of AbitibiBowater," said David Paterson, company president and chief executive officer.

"As we continue our work to better position the company, we will benefit from Dick's extensive experience and business insight," Paterson said in a news release.

Three month stock chart for AbitibiBowater Inc.

In the past year, Evans faced production cuts, employee layoffs and slumping demand at Rio Tinto.

By contrast, the former CEO of Alcan Inc. might be taking the chair of AbitibiBowater at precisely the right time.

In December, the pulp and paper producer already decided to cut annual production at its plants by one million metric tonnes. Among other moves, AbitibiBowater is closing a facility in Tennessee and one in Grand Falls, N.L.

The later move angered Premier Danny Williams, who then expropriated the company's hydro power assets.

In the same month, AbitibiBowater sold its stake in the holding company that controlled a number of hydro-electric properties in Ontario for $197 million.

In the coming year, AbitibiBowater expects that cost-reduction moves to boost the company's bottom line in 2009.

"Despite lower volumes, as evidenced by our production curtailments, we expect a substantial improvement in financial performance in 2009 compared to 2008," said Paterson in reaffirming the company's fourth-quarter guidance.

AbitibiBowater is forecasting an operating profit of between $65 million and $95 million in the final three months of the year.

The company lost $302 million on sales of $1.7 billion for the third quarter of 2008. AbitibiBowater lost $142 million for the same period one year earlier.