743368--4/14/2008--BOWATER_INC

related topics
{cost, operation, labor}
{operation, international, foreign}
{product, market, service}
{cost, regulation, environmental}
{debt, indebtedness, cash}
{gas, price, oil}
{competitive, industry, competition}
{stock, price, share}
{acquisition, growth, future}
{regulation, change, law}
{capital, credit, financial}
We have substantial indebtedness that could adversely affect our financial health, and our efforts to reduce and restructure this indebtedness may not be successful. We may experience difficulties in integrating our businesses with those of Abitibi and may not realize the anticipated synergies, efficiencies and cost savings from the Combination with Abitibi. We are controlled by AbitibiBowater. Developments in alternative media could continue to adversely affect the demand for our products, especially in North America, and our responses to these developments may not be successful. Currency fluctuations may adversely affect our results of operations and financial condition, and changes in foreign currency exchange rates can affect our competitive position, selling prices and manufacturing costs. We may not be successful in our strategy of increasing our share of coated and specialty papers and competing in growth markets with higher returns. We face intense competition in the forest products industry and the failure to compete effectively would have a material adverse effect on our business, financial condition and results of operations. The forest products industry is highly cyclical. Fluctuations in the prices of, and the demand for, our products could result in smaller or negative profit margins, lower sales volumes, and curtailment or closure of operations. Our manufacturing businesses may have difficulty obtaining fiber at favorable prices, or at all. An increase in the cost of our purchased energy, chemicals and other raw materials would lead to higher manufacturing costs, thereby reducing our margins. We could experience disruptions in operations and/or increased labor costs due to labor disputes. Our operations require substantial capital and we may not have adequate capital resources to provide for all of our capital requirements. Changes in laws and regulations could adversely affect our results of operations. Changes in the political or economic conditions in Canada, the United States or other countries in which our products are manufactured or sold could adversely affect our results of operations.

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