Domtar Corp. posted a profit of $48 million ($1.12 per share) in its second quarter earnings statement released Aug. 4.
It is a healthy boost from the $45 million loss recorded by the Montreal pulp and paper giant during the first quarter of this year and compared to quarterly profits of $24 million during last year's second quarter.
The company said it is “prudently optimistic” about an economic recovery as paper markets begin to stabilize. While demand remains weak, the pulp business continues to rebound with demand expected to stay strong and pulp prices improving.
“From the first quarter, shipments edged higher in paper, pulp and wood businesses with demand for our paper products stabilizing and costs for materials declining,” said Domtar president/CEO John Williams in a statement.
“Efforts to reduce working capital are paying off; margin improvements and cash flow remain priorities.”
Williams said an improved environment for pulp, lean inventories and company plans to keep costs under control “are key drivers for margin expansion in the near term.”
