Monday, 15 July 2013 11:30

Domtar Provides Business Update

Written by 
Rate this item
(0 votes)

dom logoDomtar Corporation has provided an update on its financial performance for the second quarter of 2013. Domtar's management expects sales to be $1,312 million and estimates the operating loss to be between $30 and $35 million.

EBITDA before items1 will be between $130 and $135 million primarily due to a combination of costs related to maintenance shutdowns, lower pulp productivity, lower paper and pulp shipments and higher costs for freight. During the second quarter of 2013, paper and pulp shipments stood at 801,000 tons and 344,000 metric tons, respectively.

Estimated operating loss in the second quarter of 2013 includes a litigation settlement charge of $49 million, closure and restructuring costs of $18 million, a charge of $5 million related to the impairment and write-down of property, plant and equipment, and depreciation and amortization of $93 million. Adjusting estimated operating loss for these four amounts yields EBITDA before items1.

"We had sub optimal pulp productivity and unusually high costs due to significant planned maintenance and delayed restarts in our pulp mills." said John D. Williams, President and Chief Executive Officer.  "However, a closer look at our operations demonstrates that by quarter end we made very good progress on addressing production issues in the Pulp and Paper business. We remain confident that we will return to more normalized productivity levels across the business by the end of the third quarter."

Domtar will release its second quarter of 2013 financial results before markets open on Thursday, July 25, 2013. A conference call will be held to discuss the results at 10:00 a.m. (ET) the same day. Financial analysts are invited to participate in the call by dialing 1-866-321-8231 (North America) or 1-416-642-5213 (International). Media and other interested individuals are invited to listen to the live webcast at www.domtar.com. A replay will be available by dialing 1-888-203-1112 (North America) or 1-647-436-0148 (International) using access code 5591030 until August 8, 2013.

(All financial information is in U.S. dollars, unless otherwise noted.)

SOURCE Domtar Corporation

Additional Info

About Domtar

Domtar Corporation (NYSE: UFS) (TSX: UFS) designs, manufactures, markets and distributes a wide variety of fiber-based products including communication papers, specialty and packaging papers and adult incontinence products. The foundation of its business is a network of world class wood fiber converting assets that produce papergrade, fluff and specialty pulps. The majority of its pulp production is consumed internally to manufacture paper and consumer products. Domtar is the largest integrated marketer of uncoated freesheet paper in North America with recognized brands such as Cougar®, Lynx® Opaque Ultra, Husky® Opaque Offset, First Choice® and Domtar EarthChoice®. Domtar is also a leading marketer and producer of a complete line of incontinence care products marketed primarily under the Attends® brand name as well as baby diapers. Domtar owns and operates Ariva®, a network of strategically located paper and printing supplies distribution facilities. In 2012, Domtar had sales of US$5.5 billion from some 50 countries. The Company employs approximately 9,900 people. To learn more, visit www.domtar.com.

MEDIA AND INVESTOR RELATIONS
Pascal Bossé
Vice-President
Corporate Communications and Investor Relations
Tel.: 514-848-5938

Read 4680 times