Domtar Posts Net Earnings of $10 Million in First Quarter of 2005
28 April 2005 - 11:46PM
PR Newswire (US)
Domtar Posts Net Earnings of $10 Million in First Quarter of 2005
TICKER SYMBOL DTC (TSX, NYSE) MONTREAL, April 28
/PRNewswire-FirstCall/ -- Domtar Inc. announced today net earnings
of $10 million ($0.04 per common share) in the first quarter of
2005 compared to a net loss of $44 million ($0.19 per common share)
in the first quarter of 2004 and a net loss of $26 million ($0.11
per common share) in the fourth quarter of 2004. DOMTAR INC. NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS Three months ended March 31,
2005 (In millions of Canadian dollars, unless otherwise noted) 1.
BASIS OF PRESENTATION In the opinion of management, the
accompanying unaudited interim consolidated financial statements,
prepared in accordance with Canadian generally accepted accounting
principles, contain all adjustments necessary to present fairly
Domtar Inc.'s (Domtar) financial position as at March 31, 2005 and
December 31, 2004, as well as its results of operations and its
cash flows for the three months ended March 31, 2005 and 2004.
While management believes that the disclosures presented are
adequate, these unaudited interim consolidated financial statements
and notes should be read in conjunction with Domtar's annual
consolidated financial statements. These unaudited interim
consolidated financial statements follow the same accounting
policies as the most recent annual consolidated financial
statements, except as described in Note 2. 2. ACCOUNTING CHANGE
Consolidation of variable interest entities In June 2003, the
Canadian Institute of Chartered Accountants (CICA) issued
Accounting Guideline No. 15 (AcG-15) "Consolidation of Variable
Interest Entities." AcG-15 applies to annual and interim periods
beginning on or after November 1, 2004. The application of this
guideline does not have an impact on Domtar's unaudited interim
consolidated financial statements under Canadian GAAP. 3. UNITED
STATES DOLLAR AMOUNTS The unaudited interim consolidated financial
statements are expressed in Canadian dollars and, solely for the
convenience of the reader, the 2005 unaudited interim consolidated
financial statements and the tables of certain related notes have
been translated into U.S. dollars at the March 2005 month- end rate
of CAN$1.00 equals US$0.8267. This translation should not be
construed as an application of the recommendations relating to the
accounting for foreign currency translation, but rather as
supplemental information for the reader. 4. CLOSURE AND
RESTRUCTURING COSTS In 2004, Domtar's management committed to
workforce reduction and restructuring plans throughout the
Corporation in Canada and the United States. In addition to the
reconciling items in the table below, training costs of $1 million
and other closure related costs of $3 million were incurred for the
three-month period ended March 31, 2005. The following table
provides a reconciliation of all closure and restructuring cost
provisions: