Domtar posts lower quarterly profit

MONTREAL (WSAU) – A Canadian paper maker with mills in Rothschild and Nekoosa saw its profits fall $17 million in the second quarter compared to the same time a year ago because of the sale of its wood business.

Domtar Corporation earned $31 million or $0.71 a share compared to $48 million or $1.12 a share in the second quarter of 2009.

Consolidated sales rose from $1.31 billion in second quarter 2009 to $1.55 billion in the latest quarter.

The report missed analyst estimates, which forecast earnings of $1.60 per share. Part of the decline in profits was caused by Domtar’s sale of its wood business in March to Eacom Timber Corporation for $50 million.

Domtar predicted third quarter paper shipments would be flat compared to the second quarter, before gradually declining towards year end due to seasonal factors.