July 27 Canadian paper maker Domtar Corp
posted a 9 percent rise in second-quarter
profit as a shift in focus to its personal care segment, which
makes adult diapers, begins to pay off.
Domtar, one of North America's largest producers of uncoated
freesheet papers used in office stationery, has been expanding
its personal care business through acquisitions to counter weak
prices at its core business.
Weak pulp prices have hit paper makers hard in the past few
quarters as demand in China dropped. The prices, however,
stabilized in the second quarter.
Larger rival International Paper Co's quarterly
profit met estimates as the company managed to offset a drop in
sales of printing paper by higher packaging sales.
Tembec Inc on Thursday posted its fourth straight
quarterly loss as it continues to expect paper pulp markets to
Domtar, which sells adult diapers under the Attends brand,
said second-quarter earnings rose to $59 million, or $1.61 per
share, from $54 million, or $1.30 per share, a year earlier.
Personal care business continued its growth, reaching
annualized sales of over $425 million in the second quarter
Total sales remained flat at $1.4 billion.
"So far this year, our shipments have declined due to
softness in market demand for paper but our average pricing and
margins are holding up well," Domtar Chief Executive John
Williams said in a statement.
The company expects paper shipments to continue to decline
with market demand.
Domtar's shares, which have fallen 25 percent in the past
four months, closed at C$74.05 on Thursday on the Toronto Stock