Sunday, May 24, 2009

AbitibiBowater cuts Q1 loss

Sales at AbitibiBowater Corp. crashed in the first quarter, but an even bigger drop in costs cut the company's loss.

AbitibiBowater, which is restructuring under bankruptcy protection in Canada and the U.S., cut its loss to $218 million US in the three months ended March 31, down from $248 million in the first quarter of 2008.

Sales fell to $1.11 billion from $1.73 billion, a filing with Canadian securities commissions shows.

Operating costs fell exactly the same amount as sales, by $615 million, but reductions in depreciation, distribution and selling and administrative charges generated the reduced final loss.

As it is in bankruptcy protection and its stock has been delisted from the TSX, the company has not published its report on its website.

The stock last traded at 61 cents on April 15.

The share loss was $3.78, compared with $4.32.