Canada's Domtar misses estimates as pulp, paper sales decline
July 24 (Reuters) - Domtar Corp reported weaker-than-expected second-quarter results, hurt by lower sales of pulp and paper, and forecast a decline in paper volumes for the rest of the year.
Domtar shares fell as much as 11 percent in morning trading on the Toronto Stock Exchange.
The company posted a profit of $40 million, or 61 cents per share, in the quarter ended June 30, compared with a net loss of $46 million, or 69 cents per share, a year earlier.
Consolidated sales rose nearly 6 percent to $1.39 billion as sales in the personal care business more than doubled.
Analysts on average expected the company to earn 82 cents per share on revenue of $1.43 billion, according to Thomson Reuters I/B/E/S.
Paper and pulp sales fell 4 percent, contributing 84 percent of total sales.
The company has been expanding its personal care business by buying diaper makers to offset weak pulp prices.
The operating income at the business fell as raw material costs increased.
Domtar shares were trading at C$40.88, down about 37 percent off the 52-week high of C$63.91 they touched in March. (Reporting by Ashutosh Pandey in Bangalore; Editing by Don Sebastian)
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