CONSOLIDATED-BATHURST SEES BETTER MARKET

  (Consolidated-Bathurst Inc) said it
  expects improvement in the pulp and paper sector shown in the
  second half of 1986 to continue this year. The continued
  improvement would be due to good market demand, better product
  prices and high operating capacity, the company said in its
  annual report.
      Consolidated-Bathurst, which reported operating profit of
  104 mln dlrs last year on sales of 2.02 billion dlrs, said its
  joint-venture acquisition of a market pulp mill at Castlegar,
  B.C. last year broadens its product range and will contribute
  to equity earnings.
      Last year's results were up from 1985 operating profit of
  80 mln dlrs and sales of 1.73 billion dlrs.
      The company said it views its near-term prospects with
  improved optimism.
      It said results from its Bridgewater newsprint mill in the
  U.K. should improve greatly this year due to stronger capacity
  and production and more favorable market conditions.
      It said it anticipates a return to profitability in 1987
  for its Diamond-Bathurst Inc (DBH) subsidiary, which lost 6.2
  mln U.S. dlrs and underwent a reorganization last year, and
  expects higher sales and earnings for its other North American
  packaging divisions.
      Consolidated-Bathurst said the outlook for its Europa
  Carton unit is mixed. It said the effect of trade disputes
  between the United States and the European Economic Community
  on the West German economy and the higher value of the mark may
  lead to increased costs which could not be offset by price
  increases.
  

