Domtar shares up after beating profit expectations for the third quarter

TORONTO – Shares in Domtar Corp. soared nearly 10 per cent in early trading after it reported better-than-expected results for its latest quarter.

The shares were up $4.43 at $51.33 in early trading on the Toronto Stock Exchange.

Domtar, which keeps its books in U.S. dollars, says it earned US$20 million or 32 cents per diluted share for the quarter ended Sept. 30, down from a profit of $99 million or $1.57 per diluted share a year ago.

Consolidated sales for the quarter totalled $1.28 billion, down from $1.37 billion.

Excluding a number of one-time items, Domtar says it earned $55 million or 89 cents per share in the quarter compared with a profit of $92 million or $1.46 per share in the same quarter a year earlier.

Analysts on average had expected a profit of 49 cents per share, according to financial markets data firm Refinitiv.

This report by The Canadian Press was first published Oct. 25, 2019.

Companies in this story: (TSX:UFS)