Bloomeberg.com is reporting that Domtar Corp.'s fourth-quarter loss widened to $676 million.
“It’s a huge miss,” Paul Quinn, an analyst at RBC Capital Markets in Vancouver, said today in a telephone interview. “People are going to look at these numbers and say we’re in for a very tough year.”
Domtar is among North American paper producers that have cut output as the economy slowed. Higher prices for paper didn’t offset costs to adjust the company’s operations to contracting demand, Domtar said.
“Balancing our production to customer demand through lack- of-order downtime and machine slowdowns at various mills was very costly, yet prices for our papers held steady in the quarter,” Chief Executive Officer John D. Williams said today in the earnings statement. “Undoubtedly, the economic crisis is a challenge for our business.”
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