Our preliminary 2017 second quarter financial report is in. Highlights from this Domtar quarterly financial report include:
- Second quarter 2017 net earnings of $0.61 per share
- $121 million of cash flow from operating activities
- Pulp shipments 15 percent higher year-to-date
Domtar reported net earnings of $38 million ($0.61 per share) for the second quarter of 2017, compared to net earnings of $20 million ($0.32 per share) for the first quarter of 2017 and net earnings of $18 million ($0.29 per share) for the second quarter of 2016. Sales for the second quarter of 2017 were $1.2 billion.
“Our pulp price momentum continued in the quarter following the implementation of several price increases,” said John D. Williams, President and Chief Executive Officer. “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.”
Williams added, “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.”
Operating income was $64 million in the second quarter of 2017 compared to operating income of $42 million in the first quarter of 2017. Depreciation and amortization totaled $79 million in the second quarter of 2017.
For the remainder of the year, we expect our paper shipments to be in-line with market demand. Our pulp shipments should be higher due to the ramp-up of the Ashdown fluff pulp line, while mix should continue to improve as we convert to more fluff pulp sales. In Personal Care, investments in advertising and promotion, in addition to new customer wins, should drive higher sales, while raw material costs are expected to increase marginally.
For more information on the Domtar second quarter financial report, please read the full press release.
All information from the Domtar quarterly financial report is in U.S. dollars, and all earnings per share results are diluted, unless otherwise noted.