Our preliminary 2017 third quarter financial report is in. Highlights from this Domtar quarterly financial report include:
- Third quarter 2017 net earnings of $1.11 per share
- Price increases announced for several pulp and paper grades
- $112 million of cash flow from operating activities
Domtar reported net earnings of $70 million ($1.11 per share) for the third quarter of 2017, compared to net earnings of $38 million ($0.61 per share) for the second quarter of 2017 and net earnings of $59 million ($0.94 per share) for the third quarter of 2016. Sales for the third quarter of 2017 were $1.3 billion.
“We continue to generate strong EBITDA (earnings before interest, tax, depreciation and amortization) and cash flow in our Pulp and Paper business while taking further measures to optimize our assets and improve our manufacturing processes,” said John D. Williams, President and Chief Executive Officer. “Our mills ran well and productivity was strong, resulting in a good cost performance across our network. Our paper shipments improved seasonally while momentum continued in both volume and price in our pulp business.”
Commenting on Personal Care, Mr. Williams added, “Price pressure and raw material headwinds negatively impacted margins in the quarter, but we achieved a 9 percent increase in infant diaper volumes, we are delivering cost savings, and our sales pipeline remains strong. We continue to execute our strategies for long-term success, while focusing on near-term growth opportunities as we operate in a continuing competitive environment.”
Operating income was $89 million in the third quarter of 2017 compared to operating income of $64 million in the second quarter of 2017. Depreciation and amortization totaled $80 million in the third quarter of 2017.
In the fourth quarter, we expect higher maintenance costs in Pulp and Paper. Paper is expected to be negatively impacted by seasonally unfavorable volume and mix, while Pulp should continue to realize higher prices following recently announced price increases. Personal Care should benefit from higher volume, favorable raw material costs and seasonally lower marketing expense.
For more information on the Domtar third 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.