Some slight financial improvements for Domtar to start 2021.
The company is reporting a net loss of $29 million, but that’s up from a net loss of $59 million for the fourth quarter of 2020.
However, the first quarter last year saw $5 million in earnings.
Total sales for the first quarter of 2021 were $944 million.
President and Chief Executive Officer John Williams says COVID-19 and severe winter weather in some parts were the dominant challenges.
Williams remains up-beat stating they got off to a reasonably good start to the year and expect strong second half results driven by price momentum and strong volume in paper and pulp.
The outlook indicates price increases in both pulp and paper will positively impact their results.
Near-term pulp markets should remain balanced due to steady demand growth and limited new supply.
The paper market will depend on the COVID-19 recovery, but demand is expected to rebound as more people, especially in the United States return to schools and offices.
The challenge will be planned outages at several mills, including the upcoming one in Dryden, and seasonally higher maintenance costs in the pulp and paper business.
