DOMTAR CORPORATION REPORTS PRELIMINARY FIRST QUARTER 2011 FINANCIAL RESULTS

Strong paper shipments and productivity gains across the mill system drive solid results
(All financial information is in U.S. dollars, and all earnings (loss) per share results are diluted, unless otherwise noted.)

  • First quarter net earnings of $3.14 per share, earnings before items1 of $3.25 per share
  • EBITDA before items1 of $311 million
  • Paper shipments increase 7.4% compared to fourth quarter 2010

TICKER SYMBOL
(NYSE : UFS) (TSX: UFS)

MONTREAL, April 28 /CNW Telbec/ - Domtar Corporation (NYSE: UFS) (TSX: UFS) today reported net earnings of $133 million ($3.14 per share) for the first quarter of 2011 compared to net earnings of $325 million ($7.59 per share) for the fourth quarter of 2010 and net earnings of $58 million ($1.34 per share) for the first quarter of 2010. Sales for the first quarter of 2011 amounted to $1.4 billion. Excluding items listed below, the Company had earnings before items1 of $138 million ($3.25 per share) for the first quarter of 2011 compared to earnings before items1 of $103 million ($2.41 per share) for the fourth quarter of 2010 and earnings before items1 of $69 million ($1.59 per share) for the first quarter of 2010.

First quarter 2011 items:

  • Closure and restructuring costs of $11 million ($8 million after tax);
  • Gain on the sale of property, plant and equipment and business of $7 million ($5 million after tax); and
  • Charge of $3 million ($2 million after tax) related to the impairment and write-down of property, plant and equipment.

Fourth quarter 2010 items:

  • Benefit from cellulosic biofuel producer income tax credit of $127 million;
  • Benefit from reversal of a valuation allowance on Canadian deferred income tax assets of $100 million;
  • Costs for debt repurchase of $7 million ($4 million after tax); and
  • Closure and restructuring costs of $1 million ($1 million after tax).

First quarter 2010 items:

  • Refundable excise tax credit for the production and use of alternative bio fuel mixtures of $25 million ($18 million after tax);
  • Charge of $22 million ($16 million after tax) related to the impairment and write-down of property, plant and equipment;
  • Closure and restructuring costs of $20 million ($14 million after tax); and
  • Gain on sale of property, plant and equipment of $1 million ($1 million after tax).

"Our operations ran well in the first quarter and we were able to overcome the production related issues that affected our fourth quarter 2010 financial results. We experienced strong paper shipments and continued momentum in pulp markets while keeping our costs under control. The implementation of the recently announced price increases in pulp and for numerous paper grades will help offset the inflation in input costs stemming from rising global materials prices," said John D. Williams, President and Chief Executive Officer. Commenting on capital allocation, Mr. Williams said, "We also resumed our stock repurchase activity in the first quarter and in doing so, we have returned $80 million to shareholders through the combination of stock buyback and regular dividend. Stock repurchases continue to be our preferred method to returning capital to shareholders."

QUARTERLY REVIEW

Operating income before items1 was $218 million in the first quarter of 2011 compared to an operating income before items1 of $156 million in the fourth quarter of 2010. Depreciation and amortization totaled $93 million in the first quarter of 2011. When compared to the fourth quarter of 2010, paper shipments increased 7% while pulp shipments remained stable. The shipments-to-production ratio for paper was 102% in the first quarter of 2011, compared to 97% in the fourth quarter of 2010. Paper inventories declined by 13,000 tons while pulp inventories increased by 3,000 metric tons as at the end of March, compared to year-end levels. Paper deliveries of ArivaTM, Domtar's paper merchants business, increased 1% when compared to the fourth quarter of 2010.

The increase in operating income before items1 in the first quarter of 2011 was the result of higher paper shipments, higher average selling prices in pulp and lower maintenance costs. These factors were partially offset by higher unit costs for chemicals, lower average selling prices in paper and the negative impact of a strong Canadian dollar including hedging.

(In millions of dollars)   1Q 2011   4Q 2010
Sales   1,423   1,373
Operating income   211   155
Operating income before items1   218   156
Depreciation and amortization   93   95

LIQUIDITY AND CAPITAL

Cash flow provided from operating activities amounted to $148 million and capital expenditures amounted to $13 million, resulting in free cash flow1 of $135 million in the first quarter of 2011. Domtar's net debt-to-total capitalization ratio1 stood at 7% at March 31, 2011 compared to 9% at December 31, 2010.

Under its stock repurchase program, Domtar repurchased 789,957 shares of common stock at an average price of $87.79 during the first quarter of 2011. Since the implementation of the program, the Company has repurchased a total of 1,528,004 shares of common stock at an average price of $74.35.

OUTLOOK

Paper shipments are expected to decline moderately throughout 2011. The announced closure of a paper machine at our Ashdown, Arkansas mill will help balance our production to our customer demand. Rising commodity and energy prices are expected to put pressure on some of our input costs in 2011 however we are expected to benefit from our recently announced price increases for softwood pulp and for commercial printing and converting papers. We will continue to manage our business conservatively, looking to grow profitably and to create sustainable long-term shareholder value.

EARNINGS CONFERENCE CALL

The Company will hold a conference call today at 10:00 a.m. (ET) to discuss its first quarter 2011 financial results. Financial analysts are invited to participate in the call by dialing at least 10 minutes before start time 1 (866) 321-8231 (toll free - North America) or 1 (416) 642-5213 (International), while media and other interested individuals are invited to listen to the live webcast on the Domtar Corporation website at www.domtar.com.

The Company will release its second quarter 2011 earnings on July 28, 2011 before markets open, followed by a conference call at 10:00 a.m. (ET) to discuss results. The date is tentative and will be confirmed approximately three weeks prior to the official earnings release date.

About Domtar

Domtar Corporation (NYSE/TSX:UFS) is the largest integrated manufacturer and marketer of uncoated freesheet paper in North America and the second largest in the world based on production capacity, and is also a manufacturer of papergrade, fluff and specialty pulp. The Company designs, manufactures, markets and distributes a wide range of business, commercial printing and publishing as well as converting and specialty papers including recognized brands such as Cougar®, Lynx® Opaque Ultra, Husky® Opaque Offset, First Choice® and Domtar EarthChoice® Office Paper, part of a family of environmentally and socially responsible papers. Domtar owns and operates ArivaTM, an extensive network of strategically located paper distribution facilities. The Company employs approximately 8,500 people. To learn more, visit www.domtar.com.

Forward-Looking Statements

All statements in this news release that are not based on historical fact are "forward-looking statements." While management has based any forward-looking statements contained herein on its current expectations, the information on which such expectations were based may change. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of risks, uncertainties, and other factors, many of which are outside of our control that could cause actual results to materially differ from such statements. Such risks, uncertainties, and other factors include, but are not necessarily limited to, those set forth under the captions "Forward-Looking Statements" and "Risk Factors" of the latest Form 10-K filed with the SEC as periodically updated by subsequently filed Form 10-Q's. Unless specifically required by law, we assume no obligation to update or revise these forward-looking statements to reflect new events or circumstances.

_____________________________________

1  Non-GAAP financial measure. Refer to the Reconciliation of Non-GAAP Financial Measures in the appendix.


Domtar Corporation
Highlights
(In millions of dollars, unless otherwise noted)
 
    Three months
ended March 31 
Three months
ended March 31
    2011 2010
    -------------- (Unaudited) --------------
    $ $
 
Selected Segment Information
Sales
  Papers 1,269 1,245
  Paper Merchants 217 212
  Wood - 67
Total for reportable segments 1,486 1,524
  Intersegment sales - Papers (63) (62)
  Intersegment sales - Wood - (5)
Consolidated sales 1,423 1,457
Depreciation and amortization and impairment and write-down of property, plant and equipment  
  Papers 92 96
  Paper Merchants 1 1
  Wood - 5
Total for reportable segments 93 102
  Impairment and write-down of property, plant and equipment - Papers 3 22
Consolidated depreciation and amortization and impairment and write-down of property, plant and equipment 96 124
 
Operating income (loss)
  Papers 209 120
  Paper Merchants 3 1
  Wood - (5)
  Corporate (1) -
Consolidated operating income 211 116
Interest expense, net 21 32
Earnings before income taxes 190 84
Income tax expense 57 26
Net earnings 133 58
 
Per common share (in dollars)
Net earnings
  Basic 3.16 1.35
  Diluted 3.14 1.34
Weighted average number of common and exchangeable shares outstanding (millions)    
  Basic 42.1 43.0
  Diluted 42.4 43.3
 
Cash flows provided from operating activities 148 123
Additions to property, plant and equipment 13 31
 
 
Domtar Corporation
Consolidated Statements of Earnings
(In millions of dollars, unless otherwise noted)
 
  Three months
ended March 31 
Three months
ended March 31
  2011 2010
  -------------- (Unaudited) --------------
  $ $
     
Sales 1,423 1,457
Operating expenses    
  Cost of sales, excluding depreciation and amortization 1,021 1,142
  Depreciation and amortization 93 102
  Selling, general and administrative 90 84
  Impairment and write-down of property, plant and equipment 3 22
  Closure and restructuring costs 11 20
  Other operating income, net (6) (29)
  1,212 1,341
Operating income 211 116
Interest expense, net 21 32
Earnings before income taxes 190 84
Income tax expense 57 26
Net earnings 133 58
       
Per common share (in dollars)    
     
Net earnings    
  Basic 3.16 1.35
  Diluted 3.14 1.34
Weighted average number of common and exchangeable shares outstanding (millions)    
  Basic 42.1 43.0
  Diluted 42.4 43.3
 
 
Domtar Corporation
Consolidated Balance Sheets at
(In millions of dollars)
 
  March 31  December 31
  2011 2010
  ------- (Unaudited) -------
  $ $
 
Assets
Current assets
    Cash and cash equivalents 604 530
    Receivables, less allowances of $5 and $7 721 601
    Inventories 643 648
    Prepaid expenses 32 28
    Income and other taxes receivable 54 78
    Deferred income taxes 116 115
    Total current assets 2,170 2,000
 
  Property, plant and equipment, at cost 9,336 9,255
  Accumulated depreciation (5,625) (5,488)
    Net property, plant and equipment 3,711 3,767
Intangible assets, net of amortization 57 56
Other assets 203 203
      Total assets 6,141 6,026
     
Liabilities and shareholders' equity    
Current liabilities    
  Bank indebtedness 25 23
  Trade and other payables 661 678
  Income and other taxes payable 21 22
  Long-term debt due within one year 2 2
    Total current liabilities 709 725
     
Long-term debt 825 825
Deferred income taxes and other 955 924
Other liabilities and deferred credits 364 350
     
Shareholders' equity    
  Exchangeable shares 58 64
  Additional paid-in capital 2,732 2,791
  Retained earnings 480 357
  Accumulated other comprehensive income (loss) 18 (10)
      Total shareholders' equity 3,288 3,202
      Total liabilities and shareholders' equity 6,141 6,026
 
 
Domtar Corporation
Consolidated Statements of Cash Flows
(In millions of dollars)
 
  Three months
ended March 31 
Three months
ended March 31
  2011 2010
  --------------(Unaudited) --------------
  $ $
 
Operating activities    
Net earnings   133 58
Adjustments to reconcile net earnings to cash flows from operating activities    
  Depreciation and amortization 93 102
  Deferred income taxes and tax uncertainties 29 15
  Impairment and write-down of property, plant and equipment 3 22
  Net gains on disposals of property, plant and equipment and sale of business (7) (1)
  Stock-based compensation expense 1 1
  Other 1 (1)
Changes in assets and liabilities  
  Receivables (111) (90)
  Inventories 1 10
  Prepaid expenses (1) (5)
  Trade and other payables (29) (25)
  Income and other taxes 23 23
  Difference between employer pension and other post-retirement contributions and pension
and other post-retirement expense
2 10
  Other assets and other liabilities 10 4
  Cash flows provided from operating activities 148 123
 
Investing activities  
Additions to property, plant and equipment   (13) (31)
Proceeds from disposals of property, plant and equipment   9 7
Proceeds from sale of business   4 -
  Cash flows used for investing activities - (24)
 
Financing activities  
Dividend payments   (11) -
Net change in bank indebtedness   3 (23)
Repayment of long-term debt (1) (103)
Borrowings under accounts receivable securitization program - 20
Stock repurchase (69) -
Other   4 (3)
  Cash flows used for financing activities (74) (109)
 
Net increase (decrease) in cash and cash equivalents 74 (10)
Cash and cash equivalents at beginning of period   530 324
Cash and cash equivalents at end of period   604 314
 
Supplemental cash flow information
  Net cash payments for:
    Interest 14 21
    Income taxes paid (refund) 2 (1)

Domtar Corporation
Quarterly Reconciliation of Non-GAAP Financial Measures
(In millions of dollars, unless otherwise noted)

The following table sets forth certain non-U.S. generally accepted accounting principles ("GAAP") financial metrics identified in bold as "Earnings before items", "Earnings before items per diluted share", "EBITDA", "EBITDA margin", "EBITDA before items", "EBITDA margin before items", "Free cash flow", "Net debt" and "Net debt-to-total capitalization." Management believes that the financial metrics presented are frequently used by investors and are useful to evaluate our ability to service debt and our overall credit profile. Management believes these metrics are also useful to measure the operating performance and benchmark with peers within the industry. These metrics are presented as a complement to enhance the understanding of operating results but not in substitution for GAAP results.

The Company calculates "Earnings before items" and "EBITDA before items" by excluding the after-tax (pre-tax) effect of items considered by management as not reflecting our current operations. Management uses these measures, as well as EBITDA and Free cash flow, to focus on ongoing operations and believes that it is useful to investors because it enables them to perform meaningful comparisons between periods. Domtar believes that using this information along with Net earnings provides for a more complete analysis of the results of operations. Net earnings and Cash flow provided from operating activities are the most directly comparable GAAP measures.

                   
          2011 2010  
        Q1 Q1 Q2 Q3 Q4 YTD
Reconciliation of "Earnings before items" to Net earnings              
    Net earnings ($) 133 58 31 191 325 605
  (-) Alternative fuel tax credits ($) (18) (18)
  (-) Cellulose biofuel producer credits ($) (127) (127)
  (-) Reversal of valuation allowance on Canadian deferred income tax balances ($) (100) (100)
  (+) Impairment and write-down of property, plant and equipment ($) 2 16 9 9 34
  (+) Closure and restructuring costs ($) 8 14 4 1 1 20
  (-) Net losses (gains) on disposals of property, plant and equipment and sale of businesses ($) (5) (1) 48 (18) 29
  (-) Loss on repurchase of long-term debt ($) 24 4 28
  (=) Earnings before items ($) 138 69 116 183 103 471
  ( / ) Weighted avg. number of common and exchangeable shares outstanding (diluted) (millions) 42.4 43.3 43.4 43.0 42.8 43.2
  (=) Earnings before items per diluted share ($) 3.25 1.59 2.67 4.26 2.41 10.90
               
Reconciliation of "EBITDA" and "EBITDA before items" to Net earnings              
    Net earnings ($) 133 58 31 191 325 605
  (+) Income tax expense (benefit) ($) 57 26 (5) 21 (199) (157)
  (+) Interest expense, net ($) 21 32 70 24 29 155
  (=) Operating income ($) 211 116 96 236 155 603
  (+) Depreciation and amortization ($) 93 102 101 97 95 395
  (+) Impairment and write-down of property, plant and equipment ($) 3 22 14 14 - 50
  (-) Net losses (gains) on disposals of property, plant and equipment and sale of businesses ($) (7) (1) 48 (14) - 33
  (=) EBITDA ($) 300 239 259 333 250 1,081
  (/) Sales ($) 1,423 1,457 1,547 1,473 1,373 5,850
  (=) EBITDA margin (%) 21% 16% 17% 23% 18% 18%
    EBITDA ($) 300 239 259 333 250 1,081
  (-) Alternative fuel tax credits ($) - (25) - - - (25)
  (+) Closure and restructuring costs ($) 11 20 5 1 1 27
  (=) EBITDA before items ($) 311 234 264 334 251 1,083
  (/) Sales ($) 1,423 1,457 1,547 1,473 1,373 5,850
  (=) EBITDA margin before items (%) 22% 16% 17% 23% 18% 19%
                   
Reconciliation of "Free cash flow" to Cash flow provided from operating activities                  
    Cash flow provided from operating activities ($) 148 123 610 267 166 1,166
  (-) Additions to property, plant and equipment ($) (13) (31) (43) (38) (41) (153)
  (=) Free cash flow ($) 135 92 567 229 125 1,013
                   
"Net debt-to-total capitalization" computation                  
    Bank indebtedness ($) 25 19 30 26 23  
  (+) Long-term debt due within one year ($) 2 31 30 22 2  
  (+) Long-term debt ($) 825 1,600 1,186 961 825  
  (=) Debt ($) 852 1,650 1,246 1,009 850  
  (-) Cash and cash equivalents ($) (604) (314) (514) (537) (530)  
  (=) Net debt ($) 248 1,336 732 472 320  
  (+) Shareholders' equity ($) 3,288 2,748 2,642 2,811 3,202  
  (=) Total capitalization ($) 3,536 4,084 3,374 3,283 3,522  
    Net debt ($) 248 1,336 732 472 320  
  ( / ) Total capitalization ($) 3,536 4,084 3,374 3,283 3,522  
  (=) Net debt-to-total capitalization (%) 7% 33% 22% 14% 9%  
                   

"Earnings before items", "Earnings before items per diluted share", "EBITDA", "EBITDA margin", "EBITDA before items", "EBITDA margin before items", "Free cash flow", "Net debt" and "Net debt-to-total capitalization" have no standardized meaning prescribed by GAAP and are not necessarily comparable to similar measures presented by other companies and therefore should not be considered in isolation or as a substitute for Net earnings, Operating income or any other earnings statement, cash flow statement or balance sheet financial information prepared in accordance with GAAP. It is important for readers to understand that certain items may be presented in different lines by different companies on their financial statements thereby leading to different measures for different companies.

Domtar Corporation
Quarterly Reconciliation of Non-GAAP Financial Measures - By Segment 2011
(In millions of dollars, unless otherwise noted)

The following table sets forth certain non-U.S. generally accepted accounting principles ("GAAP"), financial metrics identified in bold as "Operating income (loss) before items", "EBITDA before items" and "EBITDA margin before items" by reportable segment. Management believes that the financial metrics presented are frequently used by investors and are useful to measure the operating performance and benchmark with peers within the industry. These metrics are presented as a complement to enhance the understanding of operating results but not in substitution for GAAP results.

The company calculates the segmented "Operating income (loss) before items" by excluding the pre-tax effect of items considered by management as not reflecting our ongoing operations. Management uses these measures to focus on ongoing operations and believes that it is useful to investors because it enables them to perform meaningful comparisons between periods. Domtar believes that using this information along with Operating income (loss) provides for a more complete analysis of the results of operations. Operating income (loss) by segment is the most directly comparable GAAP measure.

                                               
        Papers Paper Merchants Corporate Total
        Q1'11 Q2'11 Q3'11 Q4'11 YTD Q1'11 Q2'11 Q3'11 Q4'11 YTD Q1'11 Q2'11 Q3'11 Q4'11 YTD Q1'11 Q2'11 Q3'11 Q4'11 YTD
Reconciliation of Operating income (loss) to "Operating income (loss) before items"                                          
    Operating income (loss) ($) 209 - - - 209 3 - - - 3 (1) - - - (1) 211 - - - 211
  (+) Impairment and write-down of property, plant and equipment ($) 3 - - - 3 - - - - - - - - - - 3 - - - 3
  (+) Closure and restructuring costs ($) 11 - - - 11 - - - - - - - - - - 11 - - - 11
  (-) Net gains on disposals of property, plant and equipment and sale of business ($) (4) - - - (4) (3) - - - (3) - - - - - (7) - - - (7)
                                               
  (=) Operating income (loss) before items ($) 219 - - - 219 - - - - - (1) - - - (1) 218 - - - 218
                                           
Reconciliation of "Operating income (loss) before items" to "EBITDA before items"                                              
    Operating income (loss) before items ($) 219 - - - 219 - - - - - (1) - - - (1) 218 - - - 218
  (+) Depreciation and amortization ($) 92 - - - 92 1 - - - 1 - - - - - 93 - - - 93
                                               
  (=) EBITDA before items ($) 311 - - - 311 1 - - - 1 (1) - - - (1) 311 - - - 311
  (/) Sales ($) 1,269 - - - 1,269 217 - - - 217 - - - - - 1,486 - - - 1,486
  (=) EBITDA margin before items (%) 25% - - - 25% - - - - - - - - - - 21% - - - 21%
                                               

"Operating income (loss) before items", "EBITDA before items" and "EBITDA margin before items" have no standardized meaning prescribed by GAAP and are not necessarily comparable to similar measures presented by other companies and therefore should not be considered in isolation or as a substitute for Operating income (loss) or any other earnings statement, cash flow statement or balance sheet financial information prepared in accordance with GAAP. It is important for readers to understand that certain items may be presented in different lines by different companies on their financial statements thereby leading to different measures for different companies.

Domtar Corporation
Quarterly Reconciliation of Non-GAAP Financial Measures - By Segment 2010
(In millions of dollars, unless otherwise noted)

The following table sets forth certain non-U.S. generally accepted accounting principles ("GAAP"), financial metrics identified in bold as "Operating income (loss) before items", "EBITDA before items" and "EBITDA margin before items" by reportable segment. Management believes that the financial metrics presented are frequently used by investors and are useful to measure the operating performance and benchmark with peers within the industry. These metrics are presented as a complement to enhance the understanding of operating results but not in substitution for GAAP results.

The company calculates the segmented "Operating income (loss) before items" by excluding the pre-tax effect of items considered by management as not reflecting our ongoing operations. Management uses these measures to focus on ongoing operations and believes that it is useful to investors because it enables them to perform meaningful comparisons between periods. Domtar believes that using this information along with Operating income (loss) provides for a more complete analysis of the results of operations. Operating income (loss) by segment is the most directly comparable GAAP measure.

                                                         
    Papers Paper Merchants Wood (1) Corporate Total
    Q1'10 Q2'10 Q3'10 Q4'10 YTD Q1'10 Q2'10 Q3'10 Q4'10 YTD Q1'10 Q2'10 Q3'10 Q4'10 YTD Q1'10 Q2'10 Q3'10 Q4'10 YTD Q1'10 Q2'10 Q3'10 Q4'10 YTD
Reconciliation of Operating income (loss) to "Operating income (loss) before items"                                                        
    Operating income (loss) ($) 120 149 237 161 667 1 (1) (3) (3) (5) (49) (54) (3) (1) (3) (7) 116 96 236 155 603
  (-) Alternative fuel tax credits ($) (25) (25) (25) (25)
  (+) Impairment and write-down of property, plant and equipment ($) 22 14 14 50 22 14 14 50
  (+) Closure and restructuring costs ($) 20 5 1 26 1 1 20 5 1 1 27
  (-) Net losses (gains) on disposals of property, plant and equipment and sale of businesses ($) (3) (14) (17) (1) 49 48 2 2 (1) 48 (14) 33
                                                         
  (=) Operating income (loss) before items ($) 137 165 238 161 701 1 (1) (2) (2) (6) (6) (1) (1) (3) (5) 132 163 237 156 688
                                                         
Reconciliation of "Operating income (loss) before items" to "EBITDA before items"                                                        
    Operating income (loss) before items ($) 137 165 238 161 701 1 (1) (2) (2) (6) (6) (1) (1) (3) (5) 132 163 237 156 688
  (+) Depreciation and amortization ($) 96 95 96 94 381 1 1 1 1 4 5 5 10 102 101 97 95 395
                                                         
  (=) EBITDA before items ($) 233 260 334 255 1,082 2 1 (1) 2 (1) 5 4 (1) (1) (3) (5) 234 264 334 251 1,083
  (/) Sales ($) 1,245 1,317 1,296 1,212 5,070 212 213 233 212 870 67 83 150 1,524 1,613 1,529 1,424 6,090
  (=) EBITDA margin before items (%) 19% 20% 26% 21% 21% 1% 6% -  3% 15% 16% 22% 18% 18%
                                                         

"Operating income (loss) before items", "EBITDA before items" and "EBITDA margin before items" have no standardized meaning prescribed by GAAP and are not necessarily comparable to similar measures presented by other companies and therefore should not be considered in isolation or as a substitute for Operating income (loss) or any other earnings statement, cash flow statement or balance sheet financial information prepared in accordance with GAAP. It is important for readers to understand that certain items may be presented in different lines by different companies on their financial statements thereby leading to different measures for different companies.

(1) As previously reported, we sold 88% of the Wood segment on June 30, 2010 to EACOM Timber Corporation ("EACOM"). During the fourth quarter of 2010, in an unrelated transaction, we sold the remaining 12% of common stock held in EACOM.

Domtar Corporation
Supplemental Segmented Information
(In millions of dollars, unless otherwise noted)

                 
      2011 2010
      Q1 Q1 Q2 Q3 Q4 YTD
Papers Segment                
  Sales ($) 1,269 1,245 1,317 1,296 1,212 5,070
    Intersegment sales - Papers ($) (63) (62) (60) (56) (51) (229)
  Operating income ($) 209 120 149 237 161 667
  Depreciation and amortization ($) 92 96 95 96 94 381
  Impairment and write-down of property, plant and equipment ($) 3 22 14 14 50
                 
  Papers              
  Papers Production ('000 ST) 899 906 882 906 873 3,567
  Papers Shipments ('000 ST) 913 960 891 896 850 3,597
    Uncoated Freesheet ('000 ST) 913 925 889 896 850 3,560
    Coated Groundwood ('000 ST) - 35 2 - - 37
                 
  Pulp              
  Pulp Shipments(a) ('000 ADMT) 375 388 486 412 376 1,662
     Hardwood Kraft Pulp (%) 20% 40% 38% 37% 24% 35%
     Softwood Kraft Pulp (%) 55% 49% 52% 53% 62% 54%
    Fluff Pulp (%) 25% 11% 10% 10% 14% 11%
               
Paper Merchants Segment                
  Sales ($) 217 212 213 233 212 870
  Operating income (loss) ($) 3 1 (1) (3) (3)
  Depreciation and amortization ($) 1 1 1 1 1 4
               
Wood Segment                
  Sales ($) - 67 83 - - 150
    Intersegment sales - Wood ($) - (5) (6) - - (11)
  Operating loss ($) - (5) (49) - - (54)
  Depreciation and amortization ($) - 5 5 - - 10
               
  Lumber Production (Millions FBM) - 172 165 - - 337
  Lumber Shipments (Millions FBM) - 164 187 - - 351
               
Average Exchange Rates CAN 0.986 1.041 1.028 1.039 1.013 1.030
  US 1.014 0.961 0.973 0.962 0.987 0.971

(a) Figures are gross of market pulp purchased from other producers on the open market for some of our paper making operations. Pulp Shipments represent the amount of pulp produced in excess of our internal requirement.

Note: the term "ST" refers to a short ton, the term "ADMT" refers to an air dry metric ton, and the term "FBM" refers to foot board measure.

 

 

 

SOURCE DOMTAR CORPORATION

For further information:

MEDIA AND INVESTOR RELATIONS 
Pascal Bossé
Vice-President
Corporate Communications and Investor Relations
Tel.: 514-848-5938

Profil de l'entreprise

DOMTAR CORPORATION

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