When compared to the first quarter of 2014, manufactured paper shipments decreased 3.1% and pulp shipments increased 5.7%. The shipments-to-production ratio for paper was 99% in the second quarter of 2014, compared to 100% in the first quarter of 2014. Paper inventories increased by 9,000 tons while pulp inventories decreased by 10,000 metric tons at the end of June when compared to March levels.

 

Domtar Corporation reported net earnings of $40 million ($0.61 per share) for the second quarter of 2014 compared to net earnings of $39 million #

Liquidity and Capital

Cash flow provided from operating activities amounted to $104 million and capital expenditures were $56 million, resulting in free cash flow1 of $48 million for the second quarter of 2014. Domtar's net debt-to-total capitalization ratio1 stood at 32% at June 30, 2014 compared to 33% at March 31, 2014.

 

Domtar Corporation reported net earnings of $40 million ($0.61 per share) for the second quarter of 2014 compared to net earnings of $39 million #

Outlook

Our paper volumes are expected to decline with market demand while global softwood pulp markets are expected to remain balanced. Domtar will continue to closely monitor its inventory levels and balance its production with its customers' demand. The ramp-up of the new production lines are expected to positively impact the Personal Care business results towards the end of the year. Input costs are expected to stay relatively stable for the second half of 2014.

 

Domtar Corporation reported net earnings of $40 million ($0.61 per share) for the second quarter of 2014 compared to net earnings of $39 million #