August 10, 2011 / 12:04 PM / 7 years ago

UPDATE 1-AbitibiBowater posts Q2 profit on cost control

Aug 10 (Reuters) - AbitibiBowater Inc posted a second-quarter profit as the company continued to reduced costs and its paper segments income improved.

The company, which emerged from bankruptcy protection in December, said April-June profit was $61 million, or 63 cents a share, compared with a loss of $297 million, or $5.15 a share, a year ago.

Excluding items, the company earned 71 cents a share.

Revenue rose slightly to $1.2 billion.

“We expect pulp pricing to be weaker but still expect pricing to stabilize later in the year,” said Chief Executive Richard Garneau, who joined the company last December and is a paper industry veteran with skills at controlling costs.

“In addition, the end of the 10 percent lumber export tax on shipments of lumber from Canada to the U.S. should provide additional relief in the weak lumber segment.”

Shares of the company closed at C$15.41 on Wednesday on the Toronto Stock Exchange. (Reporting by Aftab Ahmed in Bangalore; Editing by Joyjeet Das)

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