Domtar's Paper Shipments Surged 20% in Q3 2020

SEATTLE (Scrap Monster): Domtar Corporation reported financial results for Q3 2020. The earnings for the quarter were supported by improving market conditions and progress with strategic initiatives.

The company reported net loss of $92 million or $1.67 per share for the third quarter of 2020, compared net earnings of $20 million ($0.32 per share) for the third quarter of 2019. The sales for the quarter totalled $1.1 billion.

ALSO READ: Domtar Received FSC ReCertification for Wabigoon Forest

The manufactured paper shipments by the company surged higher by 20%, compared to the prior quarter. The shipment-to-production ratio for paper was 105% in Q3 2020. The paper inventories registered decline by 20,000 tons. Meantime, pulp shipments were down 7%. The pulp inventories saw an increase of 38,000 metric tons from the previous quarter.

John D. Williams, President and Chief Executive Officer stated that the company was able to perform very well in the quarter amidst a challenging operating environment. The teams demonstrated tremendous resiliency by continuously adapting to changing market conditions. The Kingsport conversion to recycled linerboard is going according to plan, he added.

In the forthcoming quarter, Domtar expects paper volume to remain flat. Also, mix should be unfavourable due to seasonality. The pulp markets are expected to witness gradual improvement. The company foresees stable raw material costs and lower maintenance costs in Q4 this year.