Domtar has announced a 400-per-cent increase in its profits for 1995 as compared to the previous year.
The Montreal-based forestry company made $301 million last year, compared to $75 million in 1994.
The company’s total sales rose 31 per cent last year, from $2.14 billion to $2.8 billion. Profits are soaring because of higher prices for pulp and paper products.
Domtar felt so rich that it landed in hot water when it gave a former executive $720,562 in severance pay in November. The executive had been on the job for only 18 months.
The severance was in addition to $663,348 the executive earned in salary and bonuses during 1995. Domtar’s president and chief operating officer earned $850,990 last year.
The Quebec government controls 45 per cent of Domtar’s shares.