BOWATER INDUSTRIES PROFIT EXCEED EXPECTATIONS Bowater Industries Plc <BWTR.L> 1986 pretax profits of 48.0 mln stg exceeded market expectations of around 40 mln and pushed the company's shares up sharply to a high of 491p from 468p last night, dealers said. The shares later eased back to 481p. Bowater reported a 32.4 mln stg profit in 1985. The company said in a statement accompanying the results that the underlying trend showed improvement and it intended to expand further by developing existing businesses and seeking new opportunities. It added that it had appointed David Lyon, currently managing director of Redland Plc <RDLD.L> as its new chief executive. Analysts noted that Bowater's profits of 18.9 mln stg from 13.2 mln previously had been given a boost by pension benefits of 4.5 mln stg. Profit from Australia and the Far East showed the greatest percentage rise, jumping 55.0 pct to 15.5 mln from 10.0 mln, while the profit from U.K. Operations rose 30.7 pct to 24.7 mln, and Europe, 42.9 pct to 11.0 mln.