Nov 07, 2008. /Lesprom.com/. Domtar Corp. has booked 3Q net earnings of $43 million or $0.08 per share, compared with a year-ago profit of $36 million, $0.07 per share, the company said. The paper and lumber producer's sales for the quarter were $1.6 billion. Excluding one-time items, Domtar said it earned $51million or $0.10 per share, up from $32 million a year earlier. “I am encouraged by the results, which we achieved despite high input costs, weak fine paper demand and a worsening economic environment,” stated CEO Raymond Royer. “Our earnings increased from last year's 3Q, our free cash flow is strong, our balance sheet is sound with no upcoming debt maturities and we were recently upgraded by credit agencies in tough credit market conditions.” Domtar offered a muted outlook for the current quarter, forecasting flat paper prices and lower lumber prices, with volumes “down from the third quarter across all businesses due to the weaker economy and typical seasonality.” However, management also expects a favourable foreign exchange rate, lower energy costs, and savings from its ongoing synergy program. Domtar said it will permanently close its paper machine and converting operations in Dryden, Ont., cutting 195 jobs. For 2009, Mr. Royer said, “the depth and duration of the economic slowdown and the impact this may have on office employment and demand for our products are uncertain.” Domtar Corporation is the largest integrated producer of uncoated freesheet paper in North America.