Domtar president and CEO John Williams.SHAUN BEST/Reuters
Paper and pulp producer Domtar Corp. has reported a big drop in third-quarter net earnings amid weaker selling prices and higher costs.
Quebec-based Domtar said Thursday that its third-quarter net profit fell to $117-million (U.S.) or $2.95 per share, compared with $191-million or $4.44 per share in the same 2010 quarter.
Sales revenue for the three months ended Sept. 30 totalled $1.42-billion, down from $1.47-billion in the prior-year period.
Domtar completed the acquisition of privately-held Attends Healthcare Inc. on Sept. 1 and the company's results included those of Attends for the Sept. 1-30 period, Domtar said in a news release.
Despite the decrease in performance compared with the same 2010 period, president and chief executive officer John Williams noted that its financial results improved when compared with the second quarter even though it suffered a decline in average selling prices for pulp and high input costs.
"While our domestic commodity uncoated paper volumes are in line with market demand, we have developed some business in new markets and geographies which has allowed our volumes to remain steady," he added.
Mr. Williams also noted that recent acquisition of Attends offered organic growth prospects while the current economic uncertainty "provides a backdrop to seize other opportunities and to continue to buy back stock."
Domtar is the largest integrated manufacturer and marketer of uncoated freesheet paper in North America and the second largest in the world based on production capacity, and is also a manufacturer of papergrade, fluff and specialty pulp.