Domtar Corporation Reports Preliminary Fourth Quarter and Fiscal Year 2020 Financial Results

Domtar Corporation (NYSE: UFS) (TSX: UFS) today reported a net loss of $59 million ($1.07 per share) for the fourth quarter of 2020 compared to a net loss of $92 million ($1.67 per share) for the third quarter of 2020, and a net loss of $34 million ($0.59 per share) for the fourth quarter of 2019. Sales for the fourth quarter of 2020 were $0.9 billion.

The fourth quarter 2020 results include an after-tax loss of $43 million ($0.78 per share) from discontinued operations related to the announced sale of the Personal Care Business, compared to earnings of $19 million ($0.34 per share) for the third quarter of 2020 and earnings of $10 million ($0.17 per share) for the fourth quarter of 2019.

Excluding discontinued operations and the items listed below, the Company had earnings from continuing operations before items1 of $19 million ($0.34 per share) for the fourth quarter of 2020, compared to loss from continuing operations before items1 of $1 million ($0.02 per share) for the third quarter of 2020 and loss from continuing operations before items1 of $9 million ($0.16 per share) for the fourth quarter of 2019.

For fiscal year 2020, net loss amounted to $127 million ($2.29 per share), compared to net earnings of $84 million ($1.37 per share) for fiscal year 2019. The Company had earnings from continuing operations before items1 of $1 million ($0.02 per share) for fiscal year 2020, compared to earnings from continuing operations before items1 of $149 million ($2.43 per share) for fiscal year 2019. Sales were $3.7 billion for fiscal year 2020.

“Despite the challenges from the Covid-19 pandemic, our teams demonstrated resiliency by continuously adapting to changing market conditions which led us to achieve solid results. I’m proud of the teamwork that allowed us to not just stand up in the face of adversity, but to move forward during such a challenging time and in accordance with our strategy. We met many goals last year; we prioritized maximizing cash, reducing costs, and remaining an agile, reliable partner to our customers. We believe these changes will improve this Company for the long-term,” said Daniel Buron, Senior Vice-President, Chief Financial Officer and Acting Chief Executive Officer.

“Our paper shipments were in line with the third quarter and order activity remained stable across all channels, while paper pricing was consistent with the year-to-date average. In Pulp, we improved our cost performance, which is attributable to lower maintenance costs, our cost reduction program and favorable wood costs. Market fundamentals continue to improve, and we announced several pulp price increases in the first quarter of 2021.”

Mr. Buron added, “In Personal Care, we had a strong finish to the year with improved fourth quarter performance driven by strong sales of adult incontinence products in North America and a good performance in Europe following the seasonality impact of the softer summer period. We announced the sale of the Personal Care Business to American Industrial Partners for $920 million, and we expect the transaction to close in the first quarter of 2021.”

Operating loss was $20 million in the fourth quarter of 2020, compared to an operating loss of $152 million in the third quarter of 2020. Depreciation and amortization totaled $53 million in the fourth quarter of 2020.

Operating income before items1 was $35 million in the fourth quarter of 2020, compared to an operating income before items1 of $27 million in the third quarter of 2020.
https://domtar.gcs-web.com/news-releases/news-release-details/domtar-corporation-reports-preliminary-fourth-quarter-and-13

Related Posts

Verso Corporation Reports Third Quarter 2020 Financial Results

Net sales for the third quarter 2020 decreased $310 million compared to the third quarter of 2019, as a result of significant declines in sales volume and unfavorable price/mix. Of the $310 million, or 50%, net sales decline, $36 million, or 6%, was attributable to the closure of our Luke Mill in June 2019 and $145 million, or 24%, was a result of the sale of our Androscoggin and Stevens Point mills in February 2020, and $70 million, or 11%, was attributable to the indefinite idling of our Duluth and Wisconsin Rapids mills in July 2020. Total company sales volume was down from 679 thousand tons during the third quarter 2019, to 382 thousand tons during the same period of the current year. Of the 297 thousand ton volume decline, 36 thousand tons were attributable to the closure of our Luke Mill in June 2019, 146 thousand tons were a result of the sale of our Androscoggin and Stevens Point mills in February 2020, 79 thousand tons were attributable to the indefinite idling of our Duluth and Wisconsin Rapids mills in July 2020, and the additional decline in volume resulted from lower customer demand driven by the COVID-19 pandemic. Operating loss was $44 million for the third quarter of 2020, a decrease of $72 million when compared to operating income of $28 million for the third quarter of 2019.

Sylvamo Announces Voluntary Sale and Purchase Program for Small Shareowners

Sylvamo is offering small shareowners a convenient way to own at least 100 shares or sell their holdings. Voluntary sale and purchase programs – often called “odd lot” programs – are periodically offered by public companies to help small shareowners and reduce administrative costs. Shareowners who participate will be assessed a $3.50 processing fee per share purchased or sold, with a maximum fee of $60 per account. Beginning Monday, Aug. 21, 2023, eligible registered shareowners are being informed by mail and will be able to participate through Friday, Sept. 22, 2023, subject to early termination or extension of the program.

Nordic Paper to be acquired by Anhui Shanying Paper

Nordic Paper is a leading Swedish-based producer of kraft and greaseproof paper. Three of Nordic Paper’s mills are located in Sweden, and the fourth one in Norway. A China-based pulp and paper company, Anhui Shanying Paper Industry Co., LTD (“Anhui Shanying Paper”), has entered into an agreement to acquire 100 % of the shares in Nordic Paper Holding AB from Special Situation Venture Partner lll and Petek GmbH. Click Read More below for additional details.
Back To Top
×Close search
Search