Domtar reports net earnings of $54 million in second quarter
Domtar has posted its second quarter results, showing net earnings of $54 million compared to net earnings of $133 million for the first quarter of 2011 and net earnings of $31 million for the second quarter of 2010. Sales for the second quarter of 2011 amounted to $1.4 billion.
“We had a good sales performance from a price and volumes standpoint. However these benefits were more than offset by a seasonally high level of scheduled maintenance in our mills,” said John D. Williams, President and Chief Executive Officer.
On paper demand trends, Mr. Williams added, “Domtar paper shipments continue to trend better than forecast with healthy export volumes and good demand in our packaging paper grades. We continue to be successful in servicing our customers while keeping paper inventories tight.”
Looking into the second half of 2011, the benefits from announced price increases for business papers and lower costs stemming from maintenance in the mills are expected to favorably impact financial results. While selling prices for pulp are likely to decline on average compared to the first half of the year, uncoated freesheet paper shipments for 2011 are expected to remain steady when compared to 2010. Inflation pressures due to recent rises in commodity prices are expected to continue throughout the second half of the year.
Domtar Corporation Reports Preliminary Second Quarter 2011 Financial Results (Domtar)
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