Domtar Corporation announced it has generated net earnings of $58 million in the first quarter of 2010 compared to a net loss of $45 million in the prior year’s quarter. The company’s sales in the first quarter was $1.5 billion.
“Despite a still modest economic recovery we recorded strong
financial results due to price increases and higher pulp, paper and
wood shipments,” said John D. Williams, President and Chief Executive
Officer. Discussing the Company’s operations.
“Towards the end of the first quarter, our paper manufacturing system
was balanced with our customer demand. We are now operating at full
capacity with a lengthening backlog as a result of increased paper
demand. We also have built inventories of pulp ahead of the second
quarter, as we expect a higher level of maintenance work at our mills
and in preparation for the first phase of the recently announced
investments at our Kamloops pulp mill that will result in a 41-day
shutdown.”
The company says it expects the market to remain stable and for pulp prices to increase. However, exchange-rate pressure will continue to be felt, as well as higher maintenance costs is to be expected in the second quarter.
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