Aug 02, 2010. /Lesprom Network/. Domtar Corporation reported net earnings of $31 million for the 2Q 2010 compared to net earnings of $58 million for the 1Q 2010 and net earnings of $48 million for the 2Q 2009. Sales for the 2Q 2010 amounted to $1.5 billion, the company said in a statement received by Lesprom Network. Most of Domtar's revenue, $1.3 billion was from the paper segment which had $149 million in operating income, compared to $150 million a year ago. "We continue to execute remarkably well to deliver strong financial results. I am pleased that these efforts, coupled with our successful debt tender, have been recognized by rating agencies," said John D. Williams, President and CEO. Commenting on strategic initiatives, Mr. Williams added, "We continue our work to streamline our portfolio; we exited the coated groundwood paper business and successfully closed the sale of our Wood business. We also announced an exciting and innovative partnership in the development of fiber-based nanotechnologies. As we continue to look for opportunities to address our issues of cyclicality and the secular decline of paper demand, our strong balance sheet provides us with financial flexibility to consider various options to create sustainable, long term value for our stockholders." The company expects 3Q paper shipments to be flat compared to the 2Q, before gradually declining towards year-end due to seasonal factors. Selling prices for paper grade pulp are expected to come under pressure. As previously communicated, costs related to planned maintenance shutdowns will be materially reduced in the third quarter. Inflation on input costs is expected to be marginal for the second half of the year. 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.