Domtar reports US$38M second-quarter profit, down from US$40M a year ago

MONTREAL – Domtar Corp. (TSX:UFS) reported a second-quarter profit of US$38 million, down from $40 million a year ago, as revenue slipped lower.

The pulp and paper company, which keeps its books in U.S. dollars, said the profit amounted to 60 cents per diluted share for the quarter ended June 30 compared with a 61 cents per diluted share a year ago.

Sales totalled $1.31 billion, down from $1.39 billion in the same quarter last year.

Excluding one-time items, Domtar said it earned $39 million or 61 cents per share compared with $40 million or 61 cents per share a year ago.

Domtar said it was hit with higher costs for planned maintenance, lower paper and pulp prices, lower paper and pulp shipments, higher freight costs and overall unfavourable exchange rates.

The increase costs were partially offset by lower raw material and other costs and lower selling, general and administrative expenses.