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

Mercer International Inc. Reports Strong 2017 Third Quarter Results

Mercer International Inc. reported strong results for the third quarter ended September 30, 2017 as Operating EBITDA* increased by 34% to $64.0 million from $47.9 million in the same quarter of 2016 and by 64% from $39.1 million in the prior quarter. In the current quarter, net income increased to $21.1 million, or $0.33 per basic and $0.32 per diluted share, compared to net income of $11.9 million, or $0.18 per basic and diluted share, in the comparative quarter and a net loss of $2.1 million in the prior quarter. Mr. David M. Gandossi, the Chief Executive Officer, stated: "In the third quarter of 2017, pulp prices in Europe and North America increased as a result of continued steady demand and were generally flat in China compared to the prior quarter of 2017. Overall our average pulp sales realizations were approximately 2% higher in the third quarter of 2017 compared to the prior quarter of 2017. " Click Read More below for additional information.

Forest Sector Applauds Canada’s Filing at WTO to Fight For Jobs and Communities Affected by U.S. Duties

Wednesday, 1/10/18, the Government of Canada launched a complaint against the United States challenging Washington’s use of anti-dumping and anti-subsidy duties. Canada said U.S. procedures broke the World Trade Organization’s (WTO) Anti-Dumping Agreement, the Agreement on Subsidies and Countervailing Measures, the General Agreement on Tariffs and Trade, and the Understanding on Rules and Procedures Governing the Settlement of Disputes. “These rates tabled last night by the U.S. on uncoated groundwood paper represent the third action that stands to hurt hard working men and women in our mill communities across Canada,” says Derek Nighbor, CEO, Forest Products Association of Canada. “These duties are unwarranted and without merit and we 100% support the federal government’s “WTO filing” position. Canada and the U.S. share a longstanding and important relationship, but in the face of these unfounded trade actions it’s important that our government defends Canada’s interests”.

KP Tissue Releases Fourth Quarter and Full Year 2017 Financial Results

KPLP Q4 2017 Financial Results: Revenue in Q4 2017 was $340.0 million, compared to $339.6 million in Q4 2016, an increase of $0.4 million or 0.1%. The increase in revenue was primarily due to a selling price increase in Canada, offset by lower Consumer sales volume in Canada and the unfavourable impact of foreign exchange on U.S. dollar sales. Net loss in Q4 2017 was $18.0 million, compared to $4.5 million in Q4 2016, primarily due to lower Adjusted EBITDA of $9.2 million, an increase in tax expense of $5.8 million, a decrease in the gain on sale of non-financial assets of $2.5 million and a change in fair value of derivatives of $0.4 million in Q4 2017. These items were partially offset by a decrease in the change in amortized cost of Partnership units liability of $3.3 million and lower depreciation expense of $0.5 million. Click Read More below for additional information.
Back To Top
×Close search
Search