Domtar reports net quarterly earnings of $191 million

Domtar Corporation has reported net earnings of $191 million in its third quarter, compared to net earnings of $31 million for the second quarter of 2010 and net earnings of $183 million for the third quarter of 2009.

Sales for the third quarter of 2010 amounted to $1.5 billion.

"Once again, we delivered strong financial results while successfully executing our strategic roadmap. We reduced our exposure to hardwood pulp markets by selling our Woodland mill, paring cyclicality in our earnings and improving our risk profile. We also repaid our outstanding secured debt and maintained a strong liquidity position," said John D. Williams, President and Chief Executive Officer.

"While demand for fine paper is fairly stable, we remain conservative in our business approach because of continued high levels of unemployment in the U.S. and economic uncertainty."

Mr. Williams also said,

"On the front end of the business, we are working on promoting the responsible use of paper products with the launch of our "Paper Because" campaign. I am confident that this initiative will help educate consumers about the positive messages behind paper - a sustainable and purposeful product, - and demonstrate that sometimes, there is no substitute for paper."

Domtar's paper shipments are expected to decline in the last quarter of the year due to seasonal factors. Pulp shipments are expected to be impacted by the sale of the Woodland facility. The company anticipates that selling prices for pulp will continue to come under pressure through the end of the year due to capacity restarts. Input costs are expected to be seasonally higher in the fourth quarter.

Source: Domtar

More Details: Domtar Corporation reports preliminary third quarter 2010 financial results