Q3 2020 Domtar Corp Earnings Call
And the impact of the cares act on our full year forecasted tax rate.
Now turning to the cash flow statement on slide six.
Cash flows from operating activities amounted to $121 million, while capital expenditures amounted to $28 million.
This resulted in free cash flow of $93 million in the third quarter.
Our net debt to total capitalization ratio stood at 28% at the end of the third quarter.
Turning to the waterfall on slide seven.
When compared to the second quarter EBITDA before items increased by $27 million due to higher productivity court when $29 million higher volume for $17 million lower raw material costs were $13 million higher selling prices for $10 million and favorable exchange rates.
For $1 million. These were partially offset by lower lower coverage related wage subsidy for $60 million and Nonproduction agreement revenue realized in Q2, four $7 million higher maintenance costs were $12 million higher freight costs were $5 million.
They are fixed cost for $2 million and higher as jenniffer $1 million.
Now the revenue our business segments, starting on slide eight in the pulp and paper segment sales were 12% higher when compared to the second quarter and 17% lower when compared to the same period last year EBITDA before item was $98 million, which were $33 million higher than the second quarter of 2020.
Our paper business on slide nine.
Sales were 22% higher versus last quarter and were 21% lower versus the same period last year estimated EBITDA.
EBITDA before item was $119 million.
Manufactured paper shipments were 20% higher when compared to the second quarter and 18% lower when compared to the same period last year.
Average transaction prices for all our paper grades were $29 per ton higher than the last quarter, largely due to customer and product mix.
Let's turn to our pulp business on slide 10.
Sales were 8% lower versus the last quarter and 6% of the work versus the same period last year estimated EBITDA before at them was a negative $21 million.
While shipments were 7% lower versus the second quarter, and 5% lower when compared to the same period last year.
Average pulp prices decreased $3 per metric ton versus the second quarter.
Now lets look at page 11.
Our paper inventory decreased 20000 ton when compared to the last quarter, while pulp inventory increased by 38000 metric ton.
Our personal care business on slide 12.
Sales increased 6% when compared to last quarter and 11% versus the same period last year EBITDA before item was $31 million $2 million lower than the second quarter and $7 million higher than December last year.
Slide 13 outlines our maintenance schedule for the remainder of the year.
So this concludes my financial review and with that I'll turn the call back to John John.
Thank you Daniel in paper strong production translated into an outstanding cost performance in the quarter and one of our best in recent years.
The focus for us in a weak demand environment is to protect our overall profitability and we are delivering results in paper improved substantially in the third quarter, reflecting our team Swift response, and implementing cost savings in a healthier volume environment.
We've seen several consecutive months of increased sales and business activity from the lows of April and May are average paper prices increased by $29 per ton when compared to the second quarter as higher volume led to a significant.