It was a bittersweet year for Abitibi-Consolidated. In its recently issued annual report, the company referred to 2…
It was a bittersweet year for Abitibi-Consolidated. In its recently issued annual report, the company referred to 2004 as a year characterized by higher selling prices, lower manufacturing costs, and a requisite to adjust to a new currency dynamic. Although North American newsprint prices improved by roughly 8%, and North American newsprint costs were down by $19 a tonne, while value-added paper prices jumped an average of 4.5% and costs were down by an approximate $16 per tonne, these improvements must be viewed in light of the bolstered Canadian dollar. The skyrocketing loony ate away $188 million of the company’s operating profit.
Although much of the year was spent on what the company refers to as "repositioning," Abitibi confirms that adjustment is the name of the game, something it has learned to do well. "Adapting is something our industry, and Abitibi-Consolidated in particular, is used to, and we are adjusting to this new reality," the company said.
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