Strong operational results in Pulp and Paper and Personal Care

FORT MILL, SC - Domtar Corporation (NYSE: UFS) (TSX: UFS) today reported net earnings of $38 million ($0.60 per share) for the second quarter of 2015 compared to net earnings of $36 million ($0.56 per share) for the first quarter of 2015 and net earnings of $40 million ($0.61 per share) for the second quarter of 2014. Sales for the second quarter of 2015 were $1.3 billion. Excluding items listed below, the Company had earnings before items¹ of $39 million ($0.61 per share) for the second quarter of 2015 compared to earnings before items¹ of $48 million ($0.75 per share) for the first quarter of 2015 and earnings before items¹ of $40 million ($0.61 per share) for the second quarter of 2014. 

Second quarter 2015 items: 

• Closure and restructuring costs of $1 million ($1 million after tax); 
• Gain on disposal of property, plant and equipment of $14 million ($11 million after tax); and 
• Impairment of property, plant & equipment of $18 million ($11 million after tax). 

First quarter 2015 items: 

• Closure and restructuring costs of $1 million ($1 million after tax); 
• Gain on disposal of property, plant and equipment of $1 million ($1 million after tax); and 
• Impairment of property, plant & equipment of $19 million ($12 million after tax). 

Second quarter 2014 items: 

• None 

"Our pulp and paper business performed largely in-line with expectations. Our operations ran well despite the seasonally high level of scheduled maintenance at our mills. The flooding in the U.S. South negatively impacted some of our wood costs and supply, but production curtailments were limited," said John D. Williams, President and CEO. "Our paper shipments year-to-date are outperforming the broader North American uncoated freesheet market by 2.3%. As the trade case progresses, we will continue to monitor further opportunities resulting from lower cut-size imports while continuing to balance our capacity versus our customer demand."

Mr. Williams added, "Personal Care turned in a solid performance. Same currency sales increased 3% year over year while our cost savings program continued to deliver according to plan, driving a 300 basis-point margin improvement. Momentum in the business is growing, and we are operating and executing with more consistency. We remain focused on sharpening our strategies and capabilities that will deliver sustainable growth and value creation in this segment."  

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