Merry Christmas

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Paper & Forest Products 11/23/2005

Data Highlights—Uncoated Free Sheet

Shipments declined 1.4% year over year & compares to a 4.9% drop in September & 3.7% decline year to date.  Uncoated free sheet has posted year-over-year shipment declines in every month of 2005. 

Some of the decline in U.S. shipments can be attributed to the closure of about 500,000 tones of capacity in the first half of the year. 

Consumption is also weak, down about 4.7% through September.  Preliminary October data shows a 2.3% year over year decline (but is based on estimated trade flows).

Inventories declined 15,900 tons versus typically stable inventories in October.  At 1.278 million tons, uncoated free inventories remain at a manageable absolute level.

Inventories typically rise 31,000 tons in November.

   December — 2005

 

 

 

Happy Birthday

     Chip Pearson-7th

     George Stockbridge-13th

     Brian McGrath –26th

 

 

Cabin Bluff –2005

 

Domtar to Close Some Mills, Cut 1,800 Jobs

Nov. 30, 2005 (Press Release) - Domtar Inc. announced today a series of targeted measures aimed at returning the company to profitability. The plan includes closures of paper mills and sawmills, the sale of a paper mill and cost-cutting initiatives.

Key measures are: Permanent closure of the Cornwall, Ontario mill

· Permanent closure of PM No.10 and PM No.11 of the Ottawa, Ontario mill

· The decision to sell the Vancouver, BC mill

· Closure of the sawmills at Grand Remous and Malartic, Quebec with the intention of creating a value-added project using the existing  infrastructures

A cost reduction program as follows:

· Reduce selling, general, and administrative expenses by eliminating approximately 100 additional corporate and divisional positions, as well as other SG&A expenses

· Implement further cost reductions at the mill level by eliminating approximately 200 additional operational positions

· Consolidate North American administrative offices in Montreal and Cincinnati.

"The strengthening of the Canadian dollar has pushed some of our Canadian mills to negative cash flow generation, and we must focus on our most efficient mills in order to return to profitability in the foreseeable future. We are sad to announce that this plan will translate into a permanent workforce reduction of approximately 1,800 positions across the company, that includes the reorganization announced in December 2004 at the Cornwall mill. We believe that these actions, our previously announced dividend cut, and other measures to reinforce our support to customers, should improve our cash flow by approximately $160 million, and constitute an important step toward     improving our margins," said Richard Garneau, executive vice president, Operations.                                                                                Paper Age News:  12/1/05