Dontar posts quarterly net earnings of $58 million

Domtar Corporation has posted their preliminary first quarter results showing net earnings of $58 million compared to net earnings of $124 million for the fourth quarter of 2009 and a net loss of $45 million for the first quarter of 2009.

Highlights of the first quarter:

• Refundable excise tax credit for the production and use of alternative bio fuel mixtures of $25 million ($18 million after tax)


• Charge of $22 million ($16 million after tax) related to the impairment and write-down of property, plant and equipment


• Closure and restructuring costs of $20 million ($14 million after tax)


• Gain on sale of property, plant and equipment of $1 million ($1 million after tax)

"Despite a still modest economic recovery we recorded strong financial results due to price increases and higher pulp, paper and wood shipments," said John D. Williams, President and Chief Executive Officer. Discussing the Company's operations, Mr. Williams added, "Towards the end of the first quarter, our paper manufacturing system was balanced with our customer demand. We are now operating at full capacity with a lengthening backlog as a result of increased paper demand. We also have built inventories of pulp ahead of the second quarter, as we expect a higher level of maintenance work at our mills and in preparation for the first phase of the recently announced investments at our Kamloops pulp mill that will result in a 41-day shutdown."

Read more: Domtar's Press Releases