Domtar's 3Q profit up 19 percent, meets estimates

NEW YORK - Paper and wood products company Domtar Corp. said Wednesday its third-quarter profit rose 19 percent on higher selling prices, reduced energy and chemical usage, lower costs and a favorable exchange rate.

Net income for the three months ended in September climbed to $43 million, or 8 cents per share, compared with $36 million, or 7 cents per share, in the year-earlier period, the Montreal-based company said.

Excluding one-time items, Domtar earned $51 million, or 10 cents per share.

Analysts polled by Thomson Reuters expected, on average, earnings per share of 10 cents per share. Such expectations typically exclude one-time items.

Sales slipped to $1.63 billion from $1.66 billion. Analysts expected $1.7 billion.

Domtar said its largest business, paper production, benefited from higher average selling prices for paper, lower usage for energy and chemicals, lower costs related to planned maintenance shutdowns, a favorable exchange rate and lower other costs.

"These factors were partially mitigated by higher costs related to chemicals, freight, fiber and energy, and lower paper and pulp shipments," the company said.

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