Domtar 3Q net earnings soar to $59 million from $11 million a year ago
(Montreal, Canada, Nov. 16, 2016) Domtar Corporation has reported net earnings of $59 million for the 3Q 2016 compared to net earnings of $18 million for the 2Q 2016 and net earnings of $11 million for the 3Q 2015. Sales for the 3Q 2016 were $1.3 billion.
Domtar had earnings before items of $71 million for the 3Q 2016 compared to earnings before items of $38 million for the 2Q 2016 and earnings before items of $54 million for the 3Q 2015.
“We had a solid operating performance despite the market related downtime in paper. Productivity improved due to lower planned maintenance outages, and we further benefited from our continuous improvement program efforts resulting in lower costs,” said John D. Williams, President and CEO. “We are making meaningful progress with the ramp-up of the Ashdown fluff pulp machine with milestones achieved throughout the quarter. Production of bale softwood pulp is underway with the fluff qualification period set to begin in the 4Q.”
Mr. Williams added, “Strong sales momentum continued in Personal Care; our topline is growing faster than market with year-over-year growth of 8%. The recent acquisition of Home Delivery Incontinent Supplies Co., a leading national direct-to-consumer provider of incontinence products, will support our Personal Care growth strategy going forward.”
Operating income was $92 million in the 3Q 2016 compared to operating income of $39 million in the 2Q 2016. Depreciation and amortization totalled $87 million in the 3Q 2016.
Operating income before items was $107 million in the 3Q 2016 compared to an operating income before items of $65 million in the 2Q 2016.
Domtar is a leading provider of a wide variety of fiber-based products including communication, specialty and packaging papers, market pulp and absorbent hygiene products. (Source: press release)