Pulp and Paper Canada

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Q3 marked by weak paper demand, says Domtar’s Williams


October 30, 2012
By Pulp & Paper Canada

Domtar Corp. reported net earnings of US$66 million (US$1.84 per share) for the third quarter of 2012 compared to net earnings of US$59 million (US$1.61 per share) for the second quarter of the same year and net earnings of…

Domtar Corp. reported net earnings of US$66 million (US$1.84 per share) for the third quarter of 2012 compared to net earnings of US$59 million (US$1.61 per share) for the second quarter of the same year and net earnings of US$117 million (US$2.95 per share) for the third quarter of 2011. Sales for the third quarter of 2012 amounted to US$1.4 billion.

“The third quarter was marked by weak paper demand and by cyclically low pulp prices,” said John Williams, president and CEO. “Nevertheless, shipments for our pulp were sequentially higher, our paper pricing remained firm and paper inventories decreased by 10%. Given the macro environment, we continue to manage the business prudently, adjusting our production to customer demand through market-related downtime. I am pleased with our performance overall despite a sluggish economy and a weak pulp price environment.”

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Due to seasonal factors, Domtar paper shipments are expected to decline in the fourth quarter when compared to the third quarter. In pulp, the company anticipates that prices will begin to gradually increase in the medium term due to favorable market dynamics and low softwood inventory levels. Input costs, notably energy and chemicals, are expected to increase slightly in the fourth quarter.


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