Lower profits for Domtar

Domtar announced its financial results for the second quarter of 2010. It reflects a net profit of $ 31 million compared to $ 58 million for the first quarter.

This decline in earnings for Domtar is primarily attributed to a loss on the sale of its timber worth $ 50 million . It also includes costs for the acquisition of part of the company’s long- term debt and a charge of $14 million related to the loss and write down of fixed assets and closure costs and reorganization of $5 million .

“We continue to effectively carry out our task to produce solid financial results , “said President and CEO at Domtar, John D. Williams in a release . I am pleased that these efforts, combined with our successful bid to repurchase a portion of the long-term debt have been recognized by rating agencies.”

Indeed, with the exception of items listed above , the company recorded earnings of $ 116 million . The action is therefore amounted to $ 2.67 versus $ 1.59 for the first quarter of 2010 . The rating agencies have therefore recognized the efforts of Domtar to improve their situation.

According to the company’s forecasts , shipments of paper should remain stable during the third quarter. They are expected to decline late in the quarter because of seasonal factors.


James Fishman has been involved in the world of online magazines for more than 15 years. He helped launch Sunstone Online and continues to improve the magazine as site editor and administrator. His writing focuses primarily business and technology. To be in touch with James, feel free to contact him at james[at]sunstoneonline.com.

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