Domtar decreased sales by 3.4% in 2Q2017, from the same quarter y-o-y they declined to USD 1,224 million, generating EBITDA USD 143 million (margin 12%).
For the January-June period of 2017 the company’s sales decreased by 1% y-o-y to USD 2,528 million, generating USD 265 million of EBITDA.
John D. Williams, Domtar’s President and Chief Executive Officer, commented:
“Our pulp price momentum continued in the quarter following the implementation of several price increases. Productivity was strong, resulting in good cost performance despite the high level of scheduled major maintenance outages at several pulp and paper mills. Notably, Ashdown had an excellent operating quarter and continued to make significant strides on increasing production of fluff pulp. Customer qualifications continue to progress well, and we are on track to ramp up to approximately 50 percent fluff pulp sales by year-end.
In spite of competitive market pressures, we delivered a solid performance in Personal Care. We continued to show broad-based, year-over-year volume growth across most of our product categories, while benefits from our cost savings and efficiency improvement projects partially offset price erosion. We expect to continue to invest in innovation, marketing and targeted growth initiatives to capture the opportunities in our categories and geographies.”
Earlier Domtar declared a quarterly dividend payable on April 15, 2016.
The company designs, manufactures, markets and distributes a wide variety of fiber-based products including communication papers, specialty and packaging papers and absorbent hygiene products. The foundation of its business is a network of world class wood fiber converting assets that produce papergrade, fluff and specialty pulps. The majority of its pulp production is consumed internally to manufacture paper and consumer products. Domtar is the largest integrated marketer of uncoated freesheet paper in North America, it is also a leading marketer and producer of a broad line of absorbent hygiene products. In 2013, Domtar had sales of USD5.4 billion from some 50 countries. The Company employs approximately 10,000 people.