Bowater Incorporated 2004 Annual Report

Products

Newsprint

Bowater manufactures newsprint grades from several locations in both the United States, Canada and a facility in South Korea. The diversity of our plant locations facilitates enhanced customer service. The quality of the newsprint sheet is rated 1st or 2nd in 86% of our customer pressrooms.

Key Results
(In millions, except percentages)

Sales1

$

1,341

Depreciation1

$

148

Operating Income1

$

36

North American
Market Share


19%

Coated and Specialty

Bowater produces coated and specialty papers in both the United States and Canada. We increased our shipments in these grades by 15% in 2004.

Key Results
(In millions, except percentages)

Sales1

$

904

Depreciation1

$

102

Operating Income1

$

8

North American
Market Share –
Coated Mechanical



15%

North American
Market Share –
Specialty



12%

Market Pulp

Market pulp is manufactured at four of our mills. The pulp is sold to customers who produce an assortment of various paper products, as well as tissues, towels and hygiene products.

Key Results
(In millions, except percentages)

Sales1

$

543

Depreciation1

$

58

Operating Income1

$

38

North American
Market Share


10%

Lumber

Softwood lumber is produced at 10 sawmills in Canada and two locations in the United States. These operations also provide wood chips used by our mills.

Key Results
(In millions)

Sales1

$

370

Depreciation1

$

19

Operating Income1

$

26

1 Please reference page 28 of our Annual Report on Form 10-K for a reconciliation of product line sales, depreciation and operating income to our consolidated totals.