Mr. Michael Edwards, Senior Vice-President, Pulp and Paper Manufacturing, of Domtar Corporation will retire on June 30, 2013.

Domtar Corporation announced that its board of directors approved a 22% increase in its quarterly dividend (from $0.45 per share to $0.55 per share) on its common stock as well as on the exchangeable shares of Domtar (Canada) Paper Inc. The board of directors declared the dividend payable on July 15, 2013 to stockholders of record as of the close of business on June 14, 2013.

Domtar Corporation reported unaudited consolidated earnings results for the first quarter ended March 31, 2013. For the quarter, the company reported sales of $1,345 million compared to $1,398 million a year ago. Operating income was $49 million compared to $109 million a year ago. Earnings before income taxes and equity earnings was $24 million compared to $38 million a year ago. Net earnings were $45 million or $1.29 per diluted common share compared to $28 million or $0.76 per diluted common share a year ago. Cash flows provided from operating activities were $63 million compared to $30 million a year ago. Additions to property, plant and equipment were $56 million compared to $29 million a year ago. EBITDA was $144 million compared to $208 million a year ago. Net debt as on March 31, 2013 was $612 million compared to $656 million as of March 31, 2012. The decrease in operating income before items in the first quarter of 2013 was the result of higher usage for energy and chemicals, higher unit costs for fiber, lower average selling prices for paper, higher general production costs and higher selling, general and administrative and other expenses. These factors were partially offset by higher volumes for paper, lower costs for planned maintenance, higher average selling prices for pulp and a favorable exchange rate. The first quarter results in paper business were disappointing and this is due to low productivity, resulting in high costs. For the quarter, the company reported impairment and write-down of property, plant and equipment was $10 million compared to $2 million a year ago. The company anticipated a return to a more normalized productivity in the quarters to come. Personal care business remains on track and the capital investments should start to deliver the expected benefits towards the end of 2013.