Feb 03, 2012. /Lesprom Network/. Domtar Corporation reported net earnings of $61 million for the 4Q 2011 compared to net earnings of $117 million for the 3Q 2011 and net earnings of $325 million for the 4Q 2010. Sales for the 4Q 2011 amounted to $1.4 billion. The company had earnings before items of $93 million for the 4Q 2011 compared to earnings before items of $123 million for the 3Q 2011 and earnings before items of $103 million for the 4Q 2010. "Our pulp earnings were affected by the rapid decline in global pulp prices while earnings from our paper business were impacted by the typical seasonal slowdown of the 4Q. Nevertheless, our 4Q results are good results and I am pleased to see the Attends business perform to expectations," said John D. Williams, President and CEO. Operating income before items was $148 million in the 4Q 2011 compared to an operating income before items of $193 million in the 3Q 2011. Depreciation and amortization totaled $95 million in the 4Q 2011. The decrease in operating income before items in the 4Q 2011 was the result of lower average selling prices for pulp, lower shipments for paper and higher energy costs. These factors were partially offset by lower maintenance costs, lower freight costs, the positive impact of a weaker Canadian dollar and the inclusion of Attends' earnings for a full quarter. When compared to the 3Q 2011, paper shipments decreased 6.5% and pulp shipments increased 12.6%. Paper deliveries of ArivaTM decreased 8% when compared to the 3Q 2011. The shipments-to-production ratio for paper was 95% in the 4Q 2011, compared to 102% in the 3Q 2011. Paper inventories increased by 40,000 tons while pulp inventories decreased by 25,000 metric tons as at the end of December, compared to September levels. For fiscal year 2011, net earnings amounted to $365 million compared to net earnings of $605 million for fiscal year 2010. The Company had earnings before items of $452 million for fiscal 2011 compared to earnings before items of $471 million for fiscal 2010. Sales amounted to $5.6 billion for fiscal year 2011. Commenting on the 2011 performance, Mr. Williams said, "Looking back at 2011, we delivered another strong performance. The second half was slightly more challenging due to the decline in pulp prices however we maintained our volumes. This solid performance enabled us to pursue our commitment to returning a majority of free cash flow to shareholders. In 2011, we returned over $543 million or $13.50 per share, representing 73% of total free cash flow1, through a combination of share buyback and regular dividends." Domtar Corporation is the largest integrated manufacturer and marketer of uncoated freesheet paper in North America and the second largest in the world based on production capacity, and is also a manufacturer of papergrade, fluff and specialty pulp.