Domtar reports net earnings of $183 million

Domtar Corporation has reported net earnings of $183 million ($4.24 per share) for the third quarter of 2009 compared to net earnings of $48 million ($1.12 per share) for the second quarter of 2009 and net earnings of $43 million ($1.00 per share) for the third quarter of 2008. Sales for the third quarter of 2009 amounted to $1.4 billion.

"All of our businesses posted improved profitability, most notably in pulp which benefited from higher prices, better demand and lower downtime costs due to the restart of our Woodland and Dryden pulp mills. In our paper business, market conditions improved slightly quarter-over-quarter, as we had better shipments while taking the same level of lack-of-order downtime as in the second quarter," said John D. Williams, President and Chief Executive Officer.

"Our initiatives to reduce working capital and improve procurement spending and the sustained focus of our employees on customers, costs, and cash have contributed to generating a strong free cash flow during the quarter. Operational performance and debt repayment remain our priority. The recently announced closure of fine paper capacity and repurposing of the assets at the Plymouth mill is part of our strategy to balance our supply with customer demand and optimize the use of our assets," added Mr. Williams.

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Domtar Corporation reports preliminary third quarter 2009 financial results (Domtar)