A sharp rise in the Canadian dollar took a severe toll on Domtar’s 2004 profits. The company recently announced a n…
A sharp rise in the Canadian dollar took a severe toll on Domtar’s 2004 profits. The company recently announced a net loss of $42 million for the year, or $0.19 per common share, compared to a net loss of $193 million, or $0.86 per common share in 2003. When excluding specified items, net loss in 2004 was $33 million, or $0.15 per common share, compared to a net loss of $10 million, of $0.05 per common share in 2003.
President and CEO Raymond Royer pointed to the difficulty Canadian companies are experiencing as a result of the strong Canadian dollar. “These are trying times for companies with a large manufacturing base in Canada whose products are sold in US dollars. Although Domtar has grown its U.S. presence to approximately 50% of its asset base over the last five years, the company has nonetheless suffered from the sharp increase in the value of the Canadian dollar, leading it to post a loss for 2004."
Cost increases for wood and freight, as well as heightened duties for softwood lumber exports to the U.S. are also credited for the company’s loss.
Print this page
