Domtar Corporation reported net earnings of $40 million for the 2Q 2014 compared to net earnings of $39 million for the 1Q 2014 and net loss of $46 million for the 2Q 2013. Sales for the 2Q 2014 were $1,385 million.

Printing Papers

Domtar reports improved net earnings of $40 million in 2Q

Jul 25, 2014. /Lesprom Network/. Domtar Corporation reported net earnings of $40 million for the 2Q 2014 compared to net earnings of $39 million for the 1Q 2014 and net loss of $46 million for the 2Q 2013. Sales for the 2Q 2014 were $1,385 million, as the company said in the press release received by Lesprom Network.

Commenting on the 2Q results, John D. Williams, President and CEO, said, "While paper productivity improved from the 1Q, we took fifty-one thousand tons of lack of order downtime, which resulted in higher unit costs. Our pulp business benefited from good price momentum and we shipped over ten thousand tonnes from inventory. However, these benefits were more than offset by seasonally higher maintenance activity in our pulp mills."

Mr. Williams added, "In our Personal Care segment, results during the quarter were negatively impacted by higher raw material costs. Nevertheless, the integration of Indas is progressing well and it is performing in line with our expectations. In addition, our capacity expansion plan continues to ramp up and we are currently in the process of launching new products for strategic customers."

Operating income was $79 million in the 2Q 2014 compared to an operating income before items1 of $83 million in the 1Q 2014. Depreciation and amortization totaled $96 million in the 2Q 2014.

The decrease in operating income in the 2Q 2014 was the result of higher costs for planned maintenance, lack-of-order downtime in papers, lower paper shipments and overall unfavorable exchange rates. These factors were partially offset by lower energy costs, lower selling, general and administrative expenses, and higher average selling prices for paper and pulp.

When compared to the 1Q 2014, manufactured paper shipments decreased 3.1% and pulp shipments increased 5.7%. The shipments-to-production ratio for paper was 99% in the 2Q 2014, compared to 100% in the 1Q 2014. Paper inventories increased by 9,000 tons while pulp inventories decreased by 10,000 metric tons at the end of June when compared to March levels.

Domtar Corporation designs, manufactures, markets and distributes a wide variety of fiber-based products including communication papers, specialty and packaging papers and absorbent hygiene products.