MONTREAL, Aug. 13 - Domtar Corporation announced today net income of $11 million ($0.02 per diluted share) in the second quarter of 2007 compared to a net loss of $12 million ($0.04 per diluted share) in the second quarter of 2006 and a net income of $49 million ($0.14 per diluted share) in the first quarter of 2007.
"Our company is moving on several fronts and the second quarter proved to be quite eventful. On synergies, the process is well underway and our people have shifted to the implementation mode in an effort to quickly deliver results. On integration, our new sales organization is now in place with their focus on providing our customers the service solutions they expect. We are also actively pursuing strategic initiatives with the sale of our Wood business expected to close by year-end and more recently with the announcement of the permanent closure of three paper machines as part of our review of overall production capacity, including some mill overlaps," said Raymond Royer, President and CEO.
Commenting on the second quarter, Mr. Royer added: "Adjusting for the seasonally high level of maintenance work at several of our operations, Domtar continues to strengthen its profitability despite soft demand for uncoated freesheet papers in North America and the strength of the Canadian dollar. In these circumstances, I am particularly proud of our cash flow generation in the quarter and with our progress toward debt reduction. This is a tribute to our employees who have joined forces from the very beginning in this venture. Their pride and good will are reshaping the look of our organization."