Higher pulp prices and strong cost performance drive improved results
(All financial information is in U.S. dollars, and all earnings per share results are diluted, unless otherwise noted).
• Second quarter 2017 net earnings of $0.61 per share
• $121 million of cash flow from operating activities
• Pulp shipments 15% higher year-to-date
Domtar Corporation (NYSE: UFS) (TSX: UFS) today reported net earnings of $38 million ($0.61 per share) for the second quarter of 2017 compared to net earnings of $20 million ($0.32 per share) for the first quarter of 2017 and net earnings of $18 million ($0.29 per share) for the second quarter of 2016. Sales for the second quarter of 2017 were $1.2 billion.
Excluding items listed below, the Company had earnings before items1 of $38 million ($0.61 per share) for the second quarter of 2017 compared to earnings before items1 of $20 million ($0.32 per share) for the first quarter of 2017 and earnings before items1 of $38 million ($0.61 per share) for the second quarter of 2016.
Second quarter 2017 items: • None.
First quarter 2017 items: • None.
Second quarter 2016 items:
• Litigation settlement of $2 million ($2 million after tax);
• Impairment of property, plant & equipment of $3 million ($2 million after tax); and
• Closure and restructuring costs of $21 million ($16 million after tax).
QUARTERLY REVIEW
“Our pulp price momentum continued in the quarter following the implementation of several price increases,” said John D. Williams, President and Chief Executive Officer. “Productivity was strong, resulting in good cost performance despite the high level of scheduled major maintenance outages at several pulp and paper mills. Notably, Ashdown had an excellent operating quarter and continued to make significant strides on increasing production of fluff pulp. Customer qualifications continue to progress well and we are on track to ramp-up to approximately 50% fluff pulp sales by year-end.”
Mr. Williams added, “In spite of competitive market pressures, we delivered a solid performance in Personal Care. We continued to show broad-based, year-over-year volume growth across most of our product channels, while benefits from our cost savings and efficiency improvement projects partially offset price erosion. We expect to continue to invest in innovation, marketing and targeted growth initiatives to capture the opportunities in our categories and geographies.”
Operating income was $64 million in the second quarter of 2017 compared to operating income of $42 million in the first quarter of 2017. Depreciation and amortization totaled $79 million in the second quarter of 2017.
Operating income before items1 was $64 million in the second quarter of 2017 compared to an operating income before items1 of $42 million in the first quarter of 2017.
more detail at: http://www.domtar.com/en/investors/pressreleases/index.asp