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Domtar preliminary Q1 net earnings show 13% drop

25 Apr '14

2 min read

Domtar Corporation announces preliminary first quarter 2014 financial results. Domtar Corporation reported net earnings of $39 million ($1.20 per share) for the first quarter of 2014 compared to net earnings of $65 million ($2.00 per share) for the fourth quarter of 2013 and net earnings of $45 million ($1.29 per share) for the first quarter of 2013. Sales for the first quarter of 2014 were $1,394 million.

Excluding items, the Company had earnings before items of $42 million ($1.29 per share) for the first quarter of 2014 compared to earnings before items1 of $68 million ($2.09 per share) for the fourth quarter of 2013 and earnings before items1 of $33 million ($0.95 per share) for the first quarter of 2013.

Premium paid and costs related to the debt repurchase of $3 million ($2 million after tax). Commenting on the first quarter results, John D. Williams, President and Chief Executive Officer, said, "Severe winter weather across much of the eastern part of North America negatively impacted some of our pulp and paper operations. In particular, our mills experienced greater than normal energy and fiber costs and reduced productivity. Nonetheless, we benefited from higher pulp and paper prices with the successful implementation of price increases."

Mr. Williams added, "The integration of Indas is progressing well and the business performed in line with our expectations in the first quarter. I am pleased with the progress made so far in our Personal Care division, despite some erosion of sales in our baby diaper business. We are well underway with our adult incontinence organic growth plan and our teams are moving fast in the deployment of new machinery to begin manufacturing product-for-sale by the end of the fourth quarter. We are bringing new production online to provide the capacity and the product mix required to better serve our targeted customers."

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Domtar Corporation