Domtar Corporation reported its financial results for the third quarter and the first nine months of 2024, highlighting a modest increase in sales and significant improvements in operating income compared to the previous year. For Q3 2024, sales reached $1,771 million, a 2% increase from $1,730 million in Q3 2023. For the nine months ended September 30, 2024, sales totaled $5,307 million, up from $5,194 million in the same period of 2023.
Operating expenses for Q3 2024 decreased to $1,651 million from $1,827 million in Q3 2023, contributing to an operating income of $120 million, a substantial recovery from an operating loss of $97 million in the prior year. The improvement in operating income was primarily driven by higher pulp production, increased average selling prices for pulp products, and lower input costs. Earnings before income taxes for Q3 2024 were $64 million, compared to a loss of $160 million in Q3 2023.
Despite these gains, Domtar reported a net loss of $57 million for Q3 2024, an improvement from a net loss of $195 million in Q3 2023. The comprehensive loss also decreased significantly, from $231 million in Q3 2023 to $22 million in Q3 2024. For the nine months ended September 30, 2024, the net loss was $65 million, compared to a loss of $157 million in the same period of 2023.
The company’s total assets as of September 30, 2024, were $7,237 million, down from $7,531 million at the end of 2023. Long-term debt increased slightly to $2,437 million from $2,410 million. Cash and cash equivalents decreased to $117 million from $203 million at the end of 2023.
Strategically, Domtar has been active in acquisitions and divestitures. The company completed the acquisition of Catalyst Paper Corporation on October 27, 2023, for a nominal price, which was accounted for as a transaction between entities under common control. Additionally, Domtar sold its El Dorado sawmill for $73 million in cash, closing the transaction on August 1, 2024, and recorded a gain of $5 million from this sale.
Domtar's operational adjustments included the indefinite curtailment of paper operations at several facilities, including the Ashdown and Crofton mills, which resulted in significant restructuring costs in previous quarters. The company anticipates stable demand for paper products but expects some downward price pressure for pulp in the near term.
About Domtar CORP
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