Domtar 3Q Profit Soars On Tax Credit, Asset Sales

PITTSBURGH (AP) — Paper and wood products company Domtar Corp. reported sharply higher third-quarter profit Friday, helped by gains from a tax credit and the sale of property and equipment.

Results far exceeded analyst expectations, sending shares of the company higher.

Net income rose to $183 million, or $4.24 per share, compared with $43 million, or $1 per share, during the same period in 2008.

Excluding special items, Domtar earned $57 million, or $1.32 per share, in the latest quarter.

The latest quarter included a refundable excise tax credit of $116 million after tax for the production and use of biofuel mixtures, as well as a $12 million gain on the sale of property and equipment. It also included restructuring costs of $2 million after tax.

Revenue slipped nearly 12 percent to $1.44 billion from $1.63 billion.

Analysts polled by Thomson Reuters, who typically exclude one-time items from their estimates, expected a profit of 29 cents per share on revenue of $1.34 billion.