Bowater Incorporated 2004 Annual Report

Financial Summary

For the Year Ended December 31,

(In millions, except per-share data, ratios and shareholders)*

2004

2003

Sales

$

3,190.3

$

2,721.1

Operating income (loss) (1)

$

29.5

$

(100.9

)

Net loss

$

(87.1

)

$

(205.0

)

Diluted loss per common share

$

(1.52

)

$

(3.60

)

Average common and common equivalent
shares outstanding


57.2


57.0

Dividends declared per common share

$

0.80

$

0.80

Total assets

$

5,458.9

$

5,615.8

Total shareholders’ equity

$

1,507.3

$

1,612.7

Percent return on average common equity (1)

(5.9

)%

(12.2

)%

Total debt

$

2,514.9

$

2,506.3

Total debt as a percentage of total capitalization
in accordance with GAAP (2)


61.5


 %


59.8


 %

Total debt as a percentage of total capitalization
in accordance with credit facilities (2)


59.1


 %


56.8


 %

Current ratio

1.62

1.28

Capital expenditures, including timberlands

$

84.1

$

216.3

Shareholders of record (common stock and
exchangeable shares)

4,000

5,300

Common stock price range

$

34.15 - 48.00

$

34.23 - 47.25

*All amounts are in U.S. dollars.

(1)

Operating loss includes net gain on sale of assets of $6.9 and $124.0 million for 2004 and 2003, respectively.

(2)

The calculation of total debt as a percentage of total capitalization in accordance with our credit facilities, excludes, both in the numerator and denominator, reevaluation of debt assumed through acquisitions and minimum pension liability included in accumulated other comprehensive income (loss). Total debt as a percentage of total capitalization is the most directly comparable measure using GAAP. A reconciliation of the GAAP items to the non-GAAP calculation of total debt as a percentage of total capitalization, in accordance with credit facilities is presented on page 41 of our Annual Report on Form 10-K.