Earnings affected by lower pulp and paper prices and market related downtime in paper
(All financial information is in U.S. dollars, and all earnings per share results are diluted, unless otherwise noted).
- Fourth quarter 2019 net loss of
$0.59 per share; earnings before items1 of$0.03 per share - 92,000 tons of market-related downtime in paper
$80 million of share repurchases
Excluding items listed below, the Company had earnings before items1 of
ITEMS
Description |
Segment |
Line item |
Amount |
After tax effect |
EPS impact (per share) |
|
|
|
(in millions) |
|
|
Fourth quarter 2019 |
|
|
|
|
|
|
|
|
|
|
|
|
Pulp and Paper |
Non-service components of net periodic benefit cost |
$30 |
$22 |
$0.38 |
|
|
|
|
|
|
|
Pulp and Paper |
Closure and restructuring costs |
$17 |
$13 |
$0.22 |
|
|
|
|
|
|
|
Personal Care |
Closure and restructuring costs |
$2 |
$1 |
$0.02 |
|
|
|
|
|
|
Third quarter 2019 |
|
|
|
|
|
|
|
|
|
|
|
|
Pulp and Paper |
Impairment of long-lived assets |
$32 |
$25 |
$0.40 |
|
|
|
|
|
|
|
Pulp and Paper |
Closure and restructuring costs |
$5 |
$4 |
$0.07 |
|
|
|
|
|
|
|
Personal Care |
Impairment of long-lived assets |
$1 |
$1 |
$0.02 |
|
|
|
|
|
|
|
Personal Care |
Closure and restructuring costs |
$6 |
$5 |
$0.08 |
|
|
|
|
|
|
Fourth quarter 2018 |
|
|
|
|
|
|
|
|
|
|
|
|
Personal Care |
Impairment of long-lived assets |
$7 |
$5 |
$0.08 |
|
|
|
|
|
|
|
Personal Care |
Closure and restructuring costs |
$8 |
$6 |
$0.09 |
|
|
|
|
|
|
|
Corporate |
Income tax expense |
$5 |
$5 |
$0.08 |
|
|
|
|
|
|
FISCAL YEAR 2019 HIGHLIGHTS
For fiscal year 2019, net earnings amounted to
Commenting on the full-year results,
QUARTERLY REVIEW
“Our results in the paper business fell short of our expectations. Shipments remained weak in the quarter due to seasonally slower demand and some customer destocking. As a result, we increased market-related downtime to better balance our supply with our customer demand and reduce our inventory to more optimal levels,” said
Commenting on Personal Care, Mr. Williams added, “We had a strong finish to a good year. EBITDA1 significantly improved when compared to last year and we reached 12% EBITDA1 margins, which is the highest level since 2017. We expect to build on the momentum from this past year by continuing to focus on the execution of our margin improvement plan and restore and grow the profitability of the business.”
Operating loss was
Operating income before items1 was
|
|
|
|
|
|
|
|
|
(In millions of dollars) |
|
4Q 2019 |
|
|
3Q 2019 |
|
||
|
|
|
|
|
|
|
|
|
Sales |
|
$ |
1,244 |
|
|
$ |
1,283 |
|
Operating (loss) income |
|
|
|
|
|
|
|
|
Pulp and Paper segment |
|
|
(12 |
) |
|
|
31 |
|
Personal Care segment |
|
|
9 |
|
|
|
2 |
|
Corporate |
|
|
(12 |
) |
|
|
(4 |
) |
Total operating (loss) income |
|
|
(15 |
) |
|
|
29 |
|
Operating income before items1 |
|
|
4 |
|
|
|
73 |
|
Depreciation and amortization |
|
|
74 |
|
|
|
72 |
|
The operating loss in the fourth quarter of 2019 was the result of lower average selling prices and unfavorable productivity in pulp and paper, higher selling, general and administrative expenses, and higher maintenance, freight and raw material costs.
When compared to the third quarter of 2019, manufactured paper shipments were down 2% and pulp shipments decreased 3%. The shipment-to-production ratio for paper was 106% in the fourth quarter of 2019, compared to 103% in the third quarter of 2019. Paper inventories decreased by 36,000 tons, and pulp inventories decreased by 15,000 metric tons when compared to the third quarter of 2019.
LIQUIDITY AND CAPITAL
Cash flow from operating activities amounted to
For fiscal year 2019, cash flow from operating activities amounted to
OUTLOOK
In 2020, our paper volumes are expected to trend with market demand while pulp volumes will increase due to higher pulp productivity at our Espanola and Ashdown mills. The Pulp and Paper business will benefit from lower planned maintenance costs. Personal Care is expected to benefit from their margin improvement plan and higher sales following new customer wins. Overall, we anticipate costs, including freight, labor and raw materials, to marginally increase.
EARNINGS CONFERENCE CALL
The Company will hold a conference call today at
The Company will release its first quarter 2020 earnings results on
About
Forward-Looking Statements
Statements in this release about our plans, expectations and future performance, including the statements by Mr. Williams and those contained under “Outlook,” are “forward-looking statements.” Actual results may differ materially from those suggested by these statements for a number of reasons, including changes in customer demand and pricing, changes in manufacturing costs, future acquisitions and divestitures, including facility closings, and the other reasons identified under “Risk Factors” in our Form 10-K for 2018 as filed with the
Highlights
(In millions of dollars, unless otherwise noted)
|
|
For the three months ended |
|
|
For the twelve months ended |
|
||||||||||
|
|
December 31, |
|
|
December 31, |
|
|
December 31, |
|
|
December 31, |
|
||||
|
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
||||
|
|
(Unaudited) |
|
|||||||||||||
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Selected Segment Information |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pulp and Paper |
|
|
1,018 |
|
|
|
1,154 |
|
|
|
4,332 |
|
|
|
4,523 |
|
Personal Care |
|
|
242 |
|
|
|
254 |
|
|
|
953 |
|
|
|
1,000 |
|
Total for reportable segments |
|
|
1,260 |
|
|
|
1,408 |
|
|
|
5,285 |
|
|
|
5,523 |
|
Intersegment sales |
|
|
(16 |
) |
|
|
(18 |
) |
|
|
(65 |
) |
|
|
(68 |
) |
Consolidated sales |
|
|
1,244 |
|
|
|
1,390 |
|
|
|
5,220 |
|
|
|
5,455 |
|
Depreciation and amortization |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pulp and Paper |
|
|
57 |
|
|
|
58 |
|
|
|
228 |
|
|
|
238 |
|
Personal Care |
|
|
17 |
|
|
|
17 |
|
|
|
65 |
|
|
|
70 |
|
Total for reportable segments |
|
|
74 |
|
|
|
75 |
|
|
|
293 |
|
|
|
308 |
|
Impairment of long-lived assets – Pulp and Paper |
|
|
— |
|
|
|
— |
|
|
|
32 |
|
|
|
— |
|
Impairment of long-lived assets – Personal Care |
|
|
— |
|
|
|
7 |
|
|
|
26 |
|
|
|
7 |
|
Consolidated depreciation and amortization and impairment of long-lived assets |
|
|
74 |
|
|
|
82 |
|
|
|
351 |
|
|
|
315 |
|
Operating (loss) income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pulp and Paper |
|
|
(12 |
) |
|
|
148 |
|
|
|
225 |
|
|
|
438 |
|
Personal Care |
|
|
9 |
|
|
|
(12 |
) |
|
|
(15 |
) |
|
|
(5 |
) |
Corporate |
|
|
(12 |
) |
|
|
(3 |
) |
|
|
(47 |
) |
|
|
(47 |
) |
Consolidated operating (loss) income |
|
|
(15 |
) |
|
|
133 |
|
|
|
163 |
|
|
|
386 |
|
Interest expense, net |
|
|
14 |
|
|
|
15 |
|
|
|
52 |
|
|
|
62 |
|
Non-service components of net periodic benefit cost |
|
|
30 |
|
|
|
(5 |
) |
|
|
23 |
|
|
|
(18 |
) |
(Loss) earnings before income taxes and equity loss |
|
|
(59 |
) |
|
|
123 |
|
|
|
88 |
|
|
|
342 |
|
Income tax (benefit) expense |
|
|
(26 |
) |
|
|
35 |
|
|
|
2 |
|
|
|
57 |
|
Equity loss, net of taxes |
|
|
1 |
|
|
|
1 |
|
|
|
2 |
|
|
|
2 |
|
Net (loss) earnings |
|
|
(34 |
) |
|
|
87 |
|
|
|
84 |
|
|
|
283 |
|
Per common share (in dollars) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) earnings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
(0.59 |
) |
|
|
1.38 |
|
|
|
1.37 |
|
|
|
4.50 |
|
Diluted |
|
|
(0.59 |
) |
|
|
1.38 |
|
|
|
1.37 |
|
|
|
4.48 |
|
Weighted average number of common shares outstanding (millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
57.3 |
|
|
|
62.9 |
|
|
|
61.2 |
|
|
|
62.9 |
|
Diluted |
|
|
57.5 |
|
|
|
63.0 |
|
|
|
61.4 |
|
|
|
63.1 |
|
Cash flows from operating activities |
|
|
160 |
|
|
|
217 |
|
|
|
442 |
|
|
|
554 |
|
Additions to property, plant and equipment |
|
|
98 |
|
|
|
84 |
|
|
|
255 |
|
|
|
195 |
|
Consolidated Statements of Earnings (Loss)
(In millions of dollars, unless otherwise noted)
|
For the three months ended |
|
|
For the twelve months ended |
|
|||||||||||
|
|
December 31, |
|
|
December 31, |
|
|
December 31, |
|
|
December 31, |
|
||||
|
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
||||
|
|
(Unaudited) |
|
|||||||||||||
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales |
|
|
1,244 |
|
|
|
1,390 |
|
|
|
5,220 |
|
|
|
5,455 |
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales, excluding depreciation and amortization |
|
|
1,053 |
|
|
|
1,064 |
|
|
|
4,225 |
|
|
|
4,303 |
|
Depreciation and amortization |
|
|
74 |
|
|
|
75 |
|
|
|
293 |
|
|
|
308 |
|
Selling, general and administrative |
|
|
112 |
|
|
|
100 |
|
|
|
434 |
|
|
|
443 |
|
Impairment of long-lived assets |
|
|
— |
|
|
|
7 |
|
|
|
58 |
|
|
|
7 |
|
Closure and restructuring costs |
|
|
19 |
|
|
|
8 |
|
|
|
42 |
|
|
|
8 |
|
Other operating loss, net |
|
|
1 |
|
|
|
3 |
|
|
|
5 |
|
|
|
— |
|
|
|
|
1,259 |
|
|
|
1,257 |
|
|
|
5,057 |
|
|
|
5,069 |
|
Operating (loss) income |
|
|
(15 |
) |
|
|
133 |
|
|
|
163 |
|
|
|
386 |
|
Interest expense, net |
|
|
14 |
|
|
|
15 |
|
|
|
52 |
|
|
|
62 |
|
Non-service components of net periodic benefit cost |
|
|
30 |
|
|
|
(5 |
) |
|
|
23 |
|
|
|
(18 |
) |
(Loss) earnings before income taxes and equity loss |
|
|
(59 |
) |
|
|
123 |
|
|
|
88 |
|
|
|
342 |
|
Income tax (benefit) expense |
|
|
(26 |
) |
|
|
35 |
|
|
|
2 |
|
|
|
57 |
|
Equity loss, net of taxes |
|
|
1 |
|
|
|
1 |
|
|
|
2 |
|
|
|
2 |
|
Net (loss) earnings |
|
|
(34 |
) |
|
|
87 |
|
|
|
84 |
|
|
|
283 |
|
Per common share (in dollars) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) earnings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
(0.59 |
) |
|
|
1.38 |
|
|
|
1.37 |
|
|
|
4.50 |
|
Diluted |
|
|
(0.59 |
) |
|
|
1.38 |
|
|
|
1.37 |
|
|
|
4.48 |
|
Weighted average number of common shares outstanding (millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
57.3 |
|
|
|
62.9 |
|
|
|
61.2 |
|
|
|
62.9 |
|
Diluted |
|
|
57.5 |
|
|
|
63.0 |
|
|
|
61.4 |
|
|
|
63.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Balance Sheets at
(In millions of dollars)
|
|
December 31, |
|
|
December 31, |
|
||
|
|
2019 |
|
|
2018 |
|
||
|
(Unaudited) |
|
||||||
|
$ |
|
|
$ |
|
|||
Assets |
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
|
61 |
|
|
|
111 |
|
Receivables, less allowances of $6 and $6 |
|
|
577 |
|
|
|
670 |
|
Inventories |
|
|
786 |
|
|
|
762 |
|
Prepaid expenses |
|
|
33 |
|
|
|
24 |
|
Income and other taxes receivable |
|
|
61 |
|
|
|
22 |
|
Total current assets |
|
|
1,518 |
|
|
|
1,589 |
|
Property, plant and equipment, net |
|
|
2,567 |
|
|
|
2,605 |
|
Operating lease right-of-use assets |
|
|
81 |
|
|
|
— |
|
Intangible assets, net |
|
|
573 |
|
|
|
597 |
|
Other assets |
|
|
164 |
|
|
|
134 |
|
Total assets |
|
|
4,903 |
|
|
|
4,925 |
|
Liabilities and shareholders’ equity |
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
|
Bank indebtedness |
|
|
9 |
|
|
|
— |
|
Trade and other payables |
|
|
705 |
|
|
|
757 |
|
Income and other taxes payable |
|
|
23 |
|
|
|
25 |
|
Operating lease liabilities due within one year |
|
|
28 |
|
|
|
— |
|
Long-term debt due within one year |
|
|
1 |
|
|
|
1 |
|
Total current liabilities |
|
|
766 |
|
|
|
783 |
|
Long-term debt |
|
|
938 |
|
|
|
853 |
|
Operating lease liabilities |
|
|
69 |
|
|
|
— |
|
Deferred income taxes and other |
|
|
479 |
|
|
|
476 |
|
Other liabilities and deferred credits |
|
|
275 |
|
|
|
275 |
|
Shareholders’ equity |
|
|
|
|
|
|
|
|
Common stock |
|
|
1 |
|
|
|
1 |
|
Additional paid-in capital |
|
|
1,770 |
|
|
|
1,981 |
|
Retained earnings |
|
|
998 |
|
|
|
1,023 |
|
Accumulated other comprehensive loss |
|
|
(393 |
) |
|
|
(467 |
) |
Total shareholders’ equity |
|
|
2,376 |
|
|
|
2,538 |
|
Total liabilities and shareholders’ equity |
|
|
4,903 |
|
|
|
4,925 |
|
Consolidated Statements of Cash Flows
(In millions of dollars)
For the three months ended |
|
|
For the twelve months ended |
|
|||||||||||
|
December 31, 2019 |
|
|
December 31, 2018 |
|
|
December 31, 2019 |
|
|
December 31, 2018 |
|
||||
|
(Unaudited) |
|
|
(Unaudited) |
|
||||||||||
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Operating activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) earnings |
|
(34 |
) |
|
|
87 |
|
|
|
84 |
|
|
|
283 |
|
Adjustments to reconcile net (loss) earnings to cash flows from operating activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
74 |
|
|
|
75 |
|
|
|
293 |
|
|
|
308 |
|
Deferred income taxes and tax uncertainties |
|
(17 |
) |
|
|
10 |
|
|
|
(16 |
) |
|
|
13 |
|
Impairment of long-lived assets |
|
— |
|
|
|
7 |
|
|
|
58 |
|
|
|
7 |
|
Net gains on disposals of property, plant and equipment |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(4 |
) |
Stock-based compensation expense |
|
2 |
|
|
|
1 |
|
|
|
9 |
|
|
|
8 |
|
Equity loss, net |
|
1 |
|
|
|
1 |
|
|
|
2 |
|
|
|
2 |
|
Other |
|
— |
|
|
|
(1 |
) |
|
|
— |
|
|
|
(1 |
) |
Changes in assets and liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Receivables |
|
46 |
|
|
|
25 |
|
|
|
96 |
|
|
|
18 |
|
Inventories |
|
18 |
|
|
|
(1 |
) |
|
|
(16 |
) |
|
|
(24 |
) |
Prepaid expenses |
|
6 |
|
|
|
6 |
|
|
|
2 |
|
|
|
2 |
|
Trade and other payables |
|
44 |
|
|
|
30 |
|
|
|
(67 |
) |
|
|
24 |
|
Income and other taxes |
|
(16 |
) |
|
|
(16 |
) |
|
|
(43 |
) |
|
|
(32 |
) |
Difference between employer pension and other post-retirement contributions and pension and other post-retirement expense |
|
32 |
|
|
|
— |
|
|
|
29 |
|
|
|
(46 |
) |
Other assets and other liabilities |
|
4 |
|
|
|
(7 |
) |
|
|
11 |
|
|
|
(4 |
) |
Cash flows from operating activities |
|
160 |
|
|
|
217 |
|
|
|
442 |
|
|
|
554 |
|
Investing activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additions to property, plant and equipment |
|
(98 |
) |
|
|
(84 |
) |
|
|
(255 |
) |
|
|
(195 |
) |
Proceeds from disposals of property, plant and equipment |
|
— |
|
|
|
1 |
|
|
|
1 |
|
|
|
5 |
|
Other |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(6 |
) |
Cash flows used for investing activities |
|
(98 |
) |
|
|
(83 |
) |
|
|
(254 |
) |
|
|
(196 |
) |
Financing activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividend payments |
|
(27 |
) |
|
|
(27 |
) |
|
|
(110 |
) |
|
|
(108 |
) |
Stock repurchase |
|
(80 |
) |
|
|
— |
|
|
|
(219 |
) |
|
|
— |
|
Net change in bank indebtedness |
|
7 |
|
|
|
— |
|
|
|
9 |
|
|
|
— |
|
Change in revolving credit facility |
|
35 |
|
|
|
— |
|
|
|
80 |
|
|
|
— |
|
Proceeds from receivables securitization facility |
|
55 |
|
|
|
85 |
|
|
|
205 |
|
|
|
85 |
|
Repayments of receivables securitization facility |
|
(90 |
) |
|
|
(35 |
) |
|
|
(200 |
) |
|
|
(60 |
) |
Repayments of long-term debt |
|
— |
|
|
|
(301 |
) |
|
|
(1 |
) |
|
|
(301 |
) |
Other |
|
— |
|
|
|
1 |
|
|
|
(1 |
) |
|
|
2 |
|
Cash flows used for financing activities |
|
(100 |
) |
|
|
(277 |
) |
|
|
(237 |
) |
|
|
(382 |
) |
Net decrease in cash and cash equivalents |
|
(38 |
) |
|
|
(143 |
) |
|
|
(49 |
) |
|
|
(24 |
) |
Impact of foreign exchange on cash |
|
1 |
|
|
|
(2 |
) |
|
|
(1 |
) |
|
|
(4 |
) |
Cash and cash equivalents at beginning of year |
|
98 |
|
|
|
256 |
|
|
|
111 |
|
|
|
139 |
|
Cash and cash equivalents at end of year |
|
61 |
|
|
|
111 |
|
|
|
61 |
|
|
|
111 |
|
Supplemental cash flow information |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash payments for: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest |
|
7 |
|
|
|
9 |
|
|
|
46 |
|
|
|
57 |
|
Income taxes |
|
4 |
|
|
|
31 |
|
|
|
59 |
|
|
|
71 |
|
Quarterly Reconciliation of Non-GAAP Financial Measures
(In millions of dollars, unless otherwise noted)
The following table sets forth certain non-U.S. generally accepted accounting principles (“GAAP”) financial metrics identified in bold as “Earnings before items”, “Earnings before items per diluted share”, “EBITDA”, “EBITDA margin”, “EBITDA before items”, “EBITDA margin before items”, “Free cash flow”, “Net debt” and “Net debt-to-total capitalization”. Management believes that the financial metrics are useful to understand our operating performance and benchmark with peers within the industry. The Company calculates “Earnings before items” and “EBITDA before items” by excluding the after-tax (pre-tax) effect of specified items. These metrics are presented as a complement to enhance the understanding of operating results but not in substitution for GAAP results.
|
|
|
|
|
|
2019 |
|
|
2018 |
|
||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
Q1 |
|
|
Q2 |
|
|
Q3 |
|
|
Q4 |
|
|
Year |
|
|
Q1 |
|
|
Q2 |
|
|
Q3 |
|
|
Q4 |
|
|
Year |
|
||||||||||
Reconciliation of “Earnings before items” to Net earnings (loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
Net earnings (loss) |
|
($) |
|
|
80 |
|
|
|
18 |
|
|
|
20 |
|
|
|
(34 |
) |
|
|
84 |
|
|
|
54 |
|
|
|
43 |
|
|
|
99 |
|
|
|
87 |
|
|
|
283 |
|
|
(+) |
Pension settlement loss |
|
($) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
22 |
|
|
|
22 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
(+) |
Impairment of long-lived assets |
|
($) |
|
|
8 |
|
|
|
12 |
|
|
|
26 |
|
|
|
— |
|
|
|
46 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5 |
|
|
|
5 |
|
|
(+) |
Closure and restructuring costs |
|
($) |
|
|
3 |
|
|
|
6 |
|
|
|
9 |
|
|
|
14 |
|
|
|
32 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
6 |
|
|
|
6 |
|
|
(+) |
Litigation settlement |
|
($) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2 |
|
|
(-) |
Net gains on disposals of property, plant and equipment |
|
($) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1 |
) |
|
|
(2 |
) |
|
|
— |
|
|
|
— |
|
|
|
(3 |
) |
|
(-) |
U.S. Tax Reform |
|
($) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(7 |
) |
|
|
5 |
|
|
|
(2 |
) |
|
(=) |
Earnings before items |
|
($) |
|
|
91 |
|
|
|
36 |
|
|
|
55 |
|
|
|
2 |
|
|
|
184 |
|
|
|
55 |
|
|
|
41 |
|
|
|
92 |
|
|
|
103 |
|
|
|
291 |
|
|
(/) |
Weighted avg. number of common shares outstanding (diluted) |
|
(millions) |
|
|
63.2 |
|
|
|
63.3 |
|
|
|
61.7 |
|
|
|
57.5 |
|
|
|
61.4 |
|
|
|
62.9 |
|
|
|
63.2 |
|
|
|
63.2 |
|
|
|
63.0 |
|
|
|
63.1 |
|
|
(=) |
Earnings before items per diluted share |
|
($) |
|
|
1.44 |
|
|
|
0.57 |
|
|
|
0.89 |
|
|
|
0.03 |
|
|
|
3.00 |
|
|
|
0.87 |
|
|
|
0.65 |
|
|
|
1.46 |
|
|
|
1.63 |
|
|
|
4.61 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of “EBITDA” and “EBITDA before items” to Net earnings (loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
Net earnings (loss) |
|
($) |
|
|
80 |
|
|
|
18 |
|
|
|
20 |
|
|
|
(34 |
) |
|
|
84 |
|
|
|
54 |
|
|
|
43 |
|
|
|
99 |
|
|
|
87 |
|
|
|
283 |
|
|
(+) |
Equity loss, net of taxes |
|
($) |
|
|
1 |
|
|
|
— |
|
|
|
— |
|
|
|
1 |
|
|
|
2 |
|
|
|
— |
|
|
|
— |
|
|
|
1 |
|
|
|
1 |
|
|
|
2 |
|
|
(+) |
Income tax expense (benefit) |
|
($) |
|
|
24 |
|
|
|
5 |
|
|
|
(1 |
) |
|
|
(26 |
) |
|
|
2 |
|
|
|
11 |
|
|
|
8 |
|
|
|
3 |
|
|
|
35 |
|
|
|
57 |
|
|
(+) |
Interest expense, net |
|
($) |
|
|
13 |
|
|
|
13 |
|
|
|
12 |
|
|
|
14 |
|
|
|
52 |
|
|
|
16 |
|
|
|
16 |
|
|
|
15 |
|
|
|
15 |
|
|
|
62 |
|
|
(+) |
Depreciation and amortization |
|
($) |
|
|
73 |
|
|
|
74 |
|
|
|
72 |
|
|
|
74 |
|
|
|
293 |
|
|
|
79 |
|
|
|
79 |
|
|
|
75 |
|
|
|
75 |
|
|
|
308 |
|
|
(+) |
Impairment of long-lived assets |
|
($) |
|
|
10 |
|
|
|
15 |
|
|
|
33 |
|
|
|
— |
|
|
|
58 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
7 |
|
|
|
7 |
|
|
(-) |
Net gains on disposals of property, plant and equipment |
|
($) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1 |
) |
|
|
(3 |
) |
|
|
— |
|
|
|
— |
|
|
|
(4 |
) |
|
(=) |
EBITDA |
|
($) |
|
|
201 |
|
|
|
125 |
|
|
|
136 |
|
|
|
29 |
|
|
|
491 |
|
|
|
159 |
|
|
|
143 |
|
|
|
193 |
|
|
|
220 |
|
|
|
715 |
|
|
(/) |
Sales |
|
($) |
|
|
1,376 |
|
|
|
1,317 |
|
|
|
1,283 |
|
|
|
1,244 |
|
|
|
5,220 |
|
|
|
1,345 |
|
|
|
1,353 |
|
|
|
1,367 |
|
|
|
1,390 |
|
|
|
5,455 |
|
|
(=) |
EBITDA margin |
|
(%) |
|
|
15 |
% |
|
|
9 |
% |
|
|
11 |
% |
|
|
2 |
% |
|
|
9 |
% |
|
|
12 |
% |
|
|
11 |
% |
|
|
14 |
% |
|
|
16 |
% |
|
|
13 |
% |
|
|
EBITDA |
|
($) |
|
|
201 |
|
|
|
125 |
|
|
|
136 |
|
|
|
29 |
|
|
|
491 |
|
|
|
159 |
|
|
|
143 |
|
|
|
193 |
|
|
|
220 |
|
|
|
715 |
|
|
(+) |
Pension settlement loss |
|
($) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
30 |
|
|
|
30 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
(+) |
Closure and restructuring costs |
|
($) |
|
|
4 |
|
|
|
8 |
|
|
|
11 |
|
|
|
19 |
|
|
|
42 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
8 |
|
|
|
8 |
|
|
(+) |
Litigation settlement |
|
($) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2 |
|
|
(=) |
EBITDA before items |
|
($) |
|
|
205 |
|
|
|
133 |
|
|
|
147 |
|
|
|
78 |
|
|
|
563 |
|
|
|
161 |
|
|
|
143 |
|
|
|
193 |
|
|
|
228 |
|
|
|
725 |
|
|
(/) |
Sales |
|
($) |
|
|
1,376 |
|
|
|
1,317 |
|
|
|
1,283 |
|
|
|
1,244 |
|
|
|
5,220 |
|
|
|
1,345 |
|
|
|
1,353 |
|
|
|
1,367 |
|
|
|
1,390 |
|
|
|
5,455 |
|
|
(=) |
EBITDA margin before items |
|
(%) |
|
|
15 |
% |
|
|
10 |
% |
|
|
11 |
% |
|
|
6 |
% |
|
|
11 |
% |
|
|
12 |
% |
|
|
11 |
% |
|
|
14 |
% |
|
|
16 |
% |
|
|
13 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of “Free cash flow” to Cash flows from operating activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
Cash flows from operating activities |
|
($) |
|
|
55 |
|
|
|
119 |
|
|
|
108 |
|
|
|
160 |
|
|
|
442 |
|
|
|
90 |
|
|
|
177 |
|
|
|
70 |
|
|
|
217 |
|
|
|
554 |
|
|
(-) |
Additions to property, plant and equipment |
|
($) |
|
|
(46 |
) |
|
|
(55 |
) |
|
|
(56 |
) |
|
|
(98 |
) |
|
|
(255 |
) |
|
|
(25 |
) |
|
|
(37 |
) |
|
|
(49 |
) |
|
|
(84 |
) |
|
|
(195 |
) |
|
(=) |
Free cash flow |
|
($) |
|
|
9 |
|
|
|
64 |
|
|
|
52 |
|
|
|
62 |
|
|
|
187 |
|
|
|
65 |
|
|
|
140 |
|
|
|
21 |
|
|
|
133 |
|
|
|
359 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
“Net debt-to-total capitalization” computation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
Bank indebtedness |
|
($) |
|
|
3 |
|
|
|
3 |
|
|
|
1 |
|
|
|
9 |
|
|
|
|
|
|
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
(+) |
Long-term debt due within one year |
|
($) |
|
|
1 |
|
|
|
1 |
|
|
|
1 |
|
|
|
1 |
|
|
|
|
|
|
|
1 |
|
|
|
1 |
|
|
|
1 |
|
|
|
1 |
|
|
|
|
|
|
(+) |
Long-term debt |
|
($) |
|
|
853 |
|
|
|
824 |
|
|
|
938 |
|
|
|
938 |
|
|
|
|
|
|
|
1,103 |
|
|
|
1,103 |
|
|
|
1,103 |
|
|
|
853 |
|
|
|
|
|
|
(=) |
Debt |
|
($) |
|
|
857 |
|
|
|
828 |
|
|
|
940 |
|
|
|
948 |
|
|
|
|
|
|
|
1,104 |
|
|
|
1,105 |
|
|
|
1,104 |
|
|
|
854 |
|
|
|
|
|
|
(-) |
Cash and cash equivalents |
|
($) |
|
|
(94 |
) |
|
|
(93 |
) |
|
|
(98 |
) |
|
|
(61 |
) |
|
|
|
|
|
|
(152 |
) |
|
|
(264 |
) |
|
|
(256 |
) |
|
|
(111 |
) |
|
|
|
|
|
(=) |
Net debt |
|
($) |
|
|
763 |
|
|
|
735 |
|
|
|
842 |
|
|
|
887 |
|
|
|
|
|
|
|
952 |
|
|
|
841 |
|
|
|
848 |
|
|
|
743 |
|
|
|
|
|
|
(+) |
Shareholders’ equity |
|
($) |
|
|
2,608 |
|
|
|
2,619 |
|
|
|
2,439 |
|
|
|
2,376 |
|
|
|
|
|
|
|
2,493 |
|
|
|
2,458 |
|
|
|
2,553 |
|
|
|
2,538 |
|
|
|
|
|
|
(=) |
Total capitalization |
|
($) |
|
|
3,371 |
|
|
|
3,354 |
|
|
|
3,281 |
|
|
|
3,263 |
|
|
|
|
|
|
|
3,445 |
|
|
|
3,299 |
|
|
|
3,401 |
|
|
|
3,281 |
|
|
|
|
|
|
|
Net debt |
|
($) |
|
|
763 |
|
|
|
735 |
|
|
|
842 |
|
|
|
887 |
|
|
|
|
|
|
|
952 |
|
|
|
841 |
|
|
|
848 |
|
|
|
743 |
|
|
|
|
|
|
(/) |
Total capitalization |
|
($) |
|
|
3,371 |
|
|
|
3,354 |
|
|
|
3,281 |
|
|
|
3,263 |
|
|
|
|
|
|
|
3,445 |
|
|
|
3,299 |
|
|
|
3,401 |
|
|
|
3,281 |
|
|
|
|
|
|
(=) |
Net debt-to-total capitalization |
|
(%) |
|
|
23 |
% |
|
|
22 |
% |
|
|
26 |
% |
|
|
27 |
% |
|
|
|
|
|
|
28 |
% |
|
|
25 |
% |
|
|
25 |
% |
|
|
23 |
% |
|
|
|
|
“Earnings before items”, “Earnings before items per diluted share”, “EBITDA”, “EBITDA margin”, “EBITDA before items”, “EBITDA margin before items”, “Free cash flow”, “Net debt” and “Net debt-to-total capitalization” have no standardized meaning prescribed by GAAP and are not necessarily comparable to similar measures presented by other companies and therefore should not be considered in isolation or as a substitute for Net earnings (loss) or any other earnings statement, cash flow statement or balance sheet financial information prepared in accordance with GAAP. It is important for readers to understand that certain items may be presented in different lines by different companies on their financial statements, thereby leading to different measures for different companies.
Quarterly Reconciliation of Non-GAAP Financial Measures – By Segment 2019
(In millions of dollars, unless otherwise noted)
The following table sets forth certain non-U.S. generally accepted accounting principles (“GAAP”) financial metrics identified in bold as “Operating income (loss) before items”, “EBITDA before items” and “EBITDA margin before items” by reportable segment. Management believes that the financial metrics are useful to understand our operating performance and benchmark with peers within the industry. The Company calculates the segmented “Operating income (loss) before items” by excluding the pre-tax effect of specified items. These metrics are presented as a complement to enhance the understanding of operating results but not in substitution for GAAP results.
|
|
|
|
|
|
Pulp and Paper |
|
Personal Care |
|
Corporate |
|
Total |
||||||||||||||||||||||||||||||||
|
|
|
|
|
|
Q1’19 |
|
Q2’19 |
|
Q3’19 |
|
Q4’19 |
|
Year |
|
Q1’19 |
|
Q2’19 |
|
Q3’19 |
|
Q4’19 |
|
Year |
|
Q1’19 |
|
Q2’19 |
|
Q3’19 |
|
Q4’19 |
|
Year |
|
Q1’19 |
|
Q2’19 |
|
Q3’19 |
|
Q4’19 |
|
Year |
Reconciliation of Operating income (loss) to “Operating income (loss) before items” |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
Operating income (loss) |
|
($) |
|
144 |
|
62 |
|
31 |
|
(12) |
|
225 |
|
(8) |
|
(18) |
|
2 |
|
9 |
|
(15) |
|
(21) |
|
(10) |
|
(4) |
|
(12) |
|
(47) |
|
115 |
|
34 |
|
29 |
|
(15) |
|
163 |
|
(+) |
Impairment of long-lived assets |
|
($) |
|
— |
|
— |
|
32 |
|
— |
|
32 |
|
10 |
|
15 |
|
1 |
|
— |
|
26 |
|
— |
|
— |
|
— |
|
— |
|
— |
|
10 |
|
15 |
|
33 |
|
— |
|
58 |
|
(+) |
Closure and restructuring costs |
|
($) |
|
— |
|
— |
|
5 |
|
17 |
|
22 |
|
4 |
|
8 |
|
6 |
|
2 |
|
20 |
|
— |
|
— |
|
— |
|
— |
|
— |
|
4 |
|
8 |
|
11 |
|
19 |
|
42 |
|
(=) |
Operating income (loss) before items |
|
($) |
|
144 |
|
62 |
|
68 |
|
5 |
|
279 |
|
6 |
|
5 |
|
9 |
|
11 |
|
31 |
|
(21) |
|
(10) |
|
(4) |
|
(12) |
|
(47) |
|
129 |
|
57 |
|
73 |
|
4 |
|
263 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of “Operating income (loss) before items” to “EBITDA before items” |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
Operating income (loss) before items |
|
($) |
|
144 |
|
62 |
|
68 |
|
5 |
|
279 |
|
6 |
|
5 |
|
9 |
|
11 |
|
31 |
|
(21) |
|
(10) |
|
(4) |
|
(12) |
|
(47) |
|
129 |
|
57 |
|
73 |
|
4 |
|
263 |
|
(+) |
Pension settlement loss |
|
($) |
|
— |
|
— |
|
— |
|
30 |
|
30 |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
30 |
|
30 |
|
(+) |
Non-service components of net periodic benefit cost |
|
($) |
|
3 |
|
3 |
|
2 |
|
(28) |
|
(20) |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
(1) |
|
— |
|
(2) |
|
(3) |
|
3 |
|
2 |
|
2 |
|
(30) |
|
(23) |
|
(+) |
Depreciation and amortization |
|
($) |
|
57 |
|
58 |
|
56 |
|
57 |
|
228 |
|
16 |
|
16 |
|
16 |
|
17 |
|
65 |
|
— |
|
— |
|
— |
|
— |
|
— |
|
73 |
|
74 |
|
72 |
|
74 |
|
293 |
|
(=) |
EBITDA before items |
|
($) |
|
204 |
|
123 |
|
126 |
|
64 |
|
517 |
|
22 |
|
21 |
|
25 |
|
28 |
|
96 |
|
(21) |
|
(11) |
|
(4) |
|
(14) |
|
(50) |
|
205 |
|
133 |
|
147 |
|
78 |
|
563 |
|
(/) |
Sales |
|
($) |
|
1,147 |
|
1,096 |
|
1,071 |
|
1,018 |
|
4,332 |
|
247 |
|
237 |
|
227 |
|
242 |
|
953 |
|
— |
|
— |
|
— |
|
— |
|
— |
|
1,394 |
|
1,333 |
|
1,298 |
|
1,260 |
|
5,285 |
|
(=) |
EBITDA margin before items |
|
(%) |
|
18% |
|
11% |
|
12% |
|
6% |
|
12% |
|
9% |
|
9% |
|
11% |
|
12% |
|
10% |
|
— |
|
— |
|
— |
|
— |
|
— |
|
15% |
|
10% |
|
11% |
|
6% |
|
11% |
“Operating income (loss) before items”, “EBITDA before items” and “EBITDA margin before items” have no standardized meaning prescribed by GAAP and are not necessarily comparable to similar measures presented by other companies and therefore should not be considered in isolation or as a substitute for Operating income (loss) or any other earnings statement, cash flow statement or balance sheet financial information prepared in accordance with GAAP. It is important for readers to understand that certain items may be presented in different lines by different companies on their financial statements, thereby leading to different measures for different companies.
Quarterly Reconciliation of Non-GAAP Financial Measures – By Segment 2018
(In millions of dollars, unless otherwise noted)
The following table sets forth certain non-U.S. generally accepted accounting principles (“GAAP”) financial metrics identified in bold as “Operating income (loss) before items”, “EBITDA before items” and “EBITDA margin before items” by reportable segment. Management believes that the financial metrics are useful to understand our operating performance and benchmark with peers within the industry. The Company calculates the segmented “Operating income (loss) before items” by excluding the pre-tax effect of specified items. These metrics are presented as a complement to enhance the understanding of operating results but not in substitution for GAAP results.
|
|
|
|
|
|
Pulp and Paper |
|
Personal Care |
|
Corporate |
|
Total |
||||||||||||||||||||||||||||||||
|
|
|
|
|
|
Q1’18 |
|
Q2’18 |
|
Q3’18 |
|
Q4’18 |
|
Year |
|
Q1’18 |
|
Q2’18 |
|
Q3’18 |
|
Q4’18 |
|
Year |
|
Q1’18 |
|
Q2’18 |
|
Q3’18 |
|
Q4’18 |
|
Year |
|
Q1’18 |
|
Q2’18 |
|
Q3’18 |
|
Q4’18 |
|
Year |
Reconciliation of Operating income (loss) to “Operating income (loss) before items” |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
Operating income (loss) |
|
($) |
|
76 |
|
79 |
|
135 |
|
148 |
|
438 |
|
8 |
|
2 |
|
(3) |
|
(12) |
|
(5) |
|
(7) |
|
(19) |
|
(18) |
|
(3) |
|
(47) |
|
77 |
|
62 |
|
114 |
|
133 |
|
386 |
|
(+) |
Impairment of long-lived assets |
|
($) |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
7 |
|
7 |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
7 |
|
7 |
|
(-) |
Net gains on disposals of property, plant and equipment |
|
($) |
|
(1) |
|
(3) |
|
— |
|
— |
|
(4) |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
(1) |
|
(3) |
|
— |
|
— |
|
(4) |
|
(+) |
Closure and restructuring costs |
|
($) |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
8 |
|
8 |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
8 |
|
8 |
|
(+) |
Litigation settlement |
|
($) |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
2 |
|
— |
|
— |
|
— |
|
2 |
|
2 |
|
— |
|
— |
|
— |
|
2 |
|
(=) |
Operating income (loss) before items |
|
($) |
|
75 |
|
76 |
|
135 |
|
148 |
|
434 |
|
8 |
|
2 |
|
(3) |
|
3 |
|
10 |
|
(5) |
|
(19) |
|
(18) |
|
(3) |
|
(45) |
|
78 |
|
59 |
|
114 |
|
148 |
|
399 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of “Operating income (loss) before items” to “EBITDA before items” |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
Operating income (loss) before items |
|
($) |
|
75 |
|
76 |
|
135 |
|
148 |
|
434 |
|
8 |
|
2 |
|
(3) |
|
3 |
|
10 |
|
(5) |
|
(19) |
|
(18) |
|
(3) |
|
(45) |
|
78 |
|
59 |
|
114 |
|
148 |
|
399 |
|
(+) |
Non-service components of net periodic benefit cost |
|
($) |
|
4 |
|
6 |
|
4 |
|
5 |
|
19 |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
(1) |
|
— |
|
— |
|
(1) |
|
4 |
|
5 |
|
4 |
|
5 |
|
18 |
|
(+) |
Depreciation and amortization |
|
($) |
|
61 |
|
61 |
|
58 |
|
58 |
|
238 |
|
18 |
|
18 |
|
17 |
|
17 |
|
70 |
|
— |
|
— |
|
— |
|
— |
|
— |
|
79 |
|
79 |
|
75 |
|
75 |
|
308 |
|
(=) |
EBITDA before items |
|
($) |
|
140 |
|
143 |
|
197 |
|
211 |
|
691 |
|
26 |
|
20 |
|
14 |
|
20 |
|
80 |
|
(5) |
|
(20) |
|
(18) |
|
(3) |
|
(46) |
|
161 |
|
143 |
|
193 |
|
228 |
|
725 |
|
(/) |
Sales |
|
($) |
|
1,100 |
|
1,123 |
|
1,146 |
|
1,154 |
|
4,523 |
|
262 |
|
247 |
|
237 |
|
254 |
|
1,000 |
|
— |
|
— |
|
— |
|
— |
|
— |
|
1,362 |
|
1,370 |
|
1,383 |
|
1,408 |
|
5,523 |
|
(=) |
EBITDA margin before items |
|
(%) |
|
13% |
|
13% |
|
17% |
|
18% |
|
15% |
|
10% |
|
8% |
|
6% |
|
8% |
|
8% |
|
— |
|
— |
|
— |
|
— |
|
— |
|
12% |
|
10% |
|
14% |
|
16% |
|
13% |
“Operating income (loss) before items”, “EBITDA before items” and “EBITDA margin before items” have no standardized meaning prescribed by GAAP and are not necessarily comparable to similar measures presented by other companies and therefore should not be considered in isolation or as a substitute for Operating income (loss) or any other earnings statement, cash flow statement or balance sheet financial information prepared in accordance with GAAP. It is important for readers to understand that certain items may be presented in different lines by different companies on their financial statements, thereby leading to different measures for different companies.
Supplemental Segmented Information
(In millions of dollars, unless otherwise noted)
|
|
|
|
2019 |
|
|
2018 |
|
||||||||||||||||||||||||||||||||||
|
|
|
|
Q1 |
|
|
Q2 |
|
|
Q3 |
|
|
Q4 |
|
|
Year |
|
|
Q1 |
|
|
Q2 |
|
|
Q3 |
|
|
Q4 |
|
|
Year |
|
||||||||||
Pulp and Paper Segment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales |
|
($) |
|
|
1,147 |
|
|
|
1,096 |
|
|
|
1,071 |
|
|
|
1,018 |
|
|
|
4,332 |
|
|
|
1,100 |
|
|
|
1,123 |
|
|
|
1,146 |
|
|
|
1,154 |
|
|
|
4,523 |
|
Operating income (loss) |
|
($) |
|
|
144 |
|
|
|
62 |
|
|
|
31 |
|
|
|
(12 |
) |
|
|
225 |
|
|
|
76 |
|
|
|
79 |
|
|
|
135 |
|
|
|
148 |
|
|
|
438 |
|
Depreciation and amortization |
|
($) |
|
|
57 |
|
|
|
58 |
|
|
|
56 |
|
|
|
57 |
|
|
|
228 |
|
|
|
61 |
|
|
|
61 |
|
|
|
58 |
|
|
|
58 |
|
|
|
238 |
|
Impairment of long-lived assets |
|
($) |
|
|
— |
|
|
|
— |
|
|
|
32 |
|
|
|
— |
|
|
|
32 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Paper |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Paper Production |
|
(‘000 ST) |
|
|
757 |
|
|
|
697 |
|
|
|
653 |
|
|
|
619 |
|
|
|
2,726 |
|
|
|
739 |
|
|
|
739 |
|
|
|
743 |
|
|
|
757 |
|
|
|
2,978 |
|
Paper Shipments – Manufactured |
|
(‘000 ST) |
|
|
736 |
|
|
|
681 |
|
|
|
672 |
|
|
|
656 |
|
|
|
2,745 |
|
|
|
769 |
|
|
|
754 |
|
|
|
727 |
|
|
|
721 |
|
|
|
2,971 |
|
Communication Papers |
|
(‘000 ST) |
|
|
615 |
|
|
|
567 |
|
|
|
563 |
|
|
|
554 |
|
|
|
2,299 |
|
|
|
640 |
|
|
|
615 |
|
|
|
596 |
|
|
|
595 |
|
|
|
2,446 |
|
Specialty and Packaging Papers |
|
(‘000 ST) |
|
|
121 |
|
|
|
114 |
|
|
|
109 |
|
|
|
102 |
|
|
|
446 |
|
|
|
129 |
|
|
|
139 |
|
|
|
131 |
|
|
|
126 |
|
|
|
525 |
|
Paper Shipments – Sourced from 3rd parties |
|
(‘000 ST) |
|
|
23 |
|
|
|
21 |
|
|
|
25 |
|
|
|
24 |
|
|
|
93 |
|
|
|
28 |
|
|
|
26 |
|
|
|
30 |
|
|
|
25 |
|
|
|
109 |
|
Paper Shipments – Total |
|
(‘000 ST) |
|
|
759 |
|
|
|
702 |
|
|
|
697 |
|
|
|
680 |
|
|
|
2,838 |
|
|
|
797 |
|
|
|
780 |
|
|
|
757 |
|
|
|
746 |
|
|
|
3,080 |
|
Pulp |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pulp Shipments(a) |
|
(‘000 ADMT) |
|
|
349 |
|
|
|
370 |
|
|
|
416 |
|
|
|
404 |
|
|
|
1,539 |
|
|
|
374 |
|
|
|
377 |
|
|
|
390 |
|
|
|
395 |
|
|
|
1,536 |
|
Pulp Shipments mix(b): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hardwood Kraft Pulp |
|
(%) |
|
|
2 |
% |
|
|
2 |
% |
|
|
5 |
% |
|
|
5 |
% |
|
|
4 |
% |
|
|
4 |
% |
|
|
3 |
% |
|
|
3 |
% |
|
|
3 |
% |
|
|
4 |
% |
Softwood Kraft Pulp |
|
(%) |
|
|
53 |
% |
|
|
56 |
% |
|
|
55 |
% |
|
|
54 |
% |
|
|
54 |
% |
|
|
58 |
% |
|
|
56 |
% |
|
|
56 |
% |
|
|
55 |
% |
|
|
56 |
% |
Fluff Pulp |
|
(%) |
|
|
45 |
% |
|
|
42 |
% |
|
|
40 |
% |
|
|
41 |
% |
|
|
42 |
% |
|
|
38 |
% |
|
|
41 |
% |
|
|
41 |
% |
|
|
42 |
% |
|
|
40 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Personal Care Segment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales |
|
($) |
|
|
247 |
|
|
|
237 |
|
|
|
227 |
|
|
|
242 |
|
|
|
953 |
|
|
|
262 |
|
|
|
247 |
|
|
|
237 |
|
|
|
254 |
|
|
|
1,000 |
|
Operating (loss) income |
|
($) |
|
|
(8 |
) |
|
|
(18 |
) |
|
|
2 |
|
|
|
9 |
|
|
|
(15 |
) |
|
|
8 |
|
|
|
2 |
|
|
|
(3 |
) |
|
|
(12 |
) |
|
|
(5 |
) |
Depreciation and amortization |
|
($) |
|
|
16 |
|
|
|
16 |
|
|
|
16 |
|
|
|
17 |
|
|
|
65 |
|
|
|
18 |
|
|
|
18 |
|
|
|
17 |
|
|
|
17 |
|
|
|
70 |
|
Impairment of long-lived assets |
|
($) |
|
|
10 |
|
|
|
15 |
|
|
|
1 |
|
|
|
— |
|
|
|
26 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
7 |
|
|
|
7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Exchange Rates |
|
$US / $CAN |
|
|
1.329 |
|
|
|
1.337 |
|
|
|
1.321 |
|
|
|
1.321 |
|
|
|
1.327 |
|
|
|
1.264 |
|
|
|
1.290 |
|
|
|
1.307 |
|
|
|
1.321 |
|
|
|
1.296 |
|
|
|
$CAN / $US |
|
|
0.752 |
|
|
|
0.748 |
|
|
|
0.757 |
|
|
|
0.757 |
|
|
|
0.754 |
|
|
|
0.791 |
|
|
|
0.775 |
|
|
|
0.765 |
|
|
|
0.757 |
|
|
|
0.772 |
|
|
|
€ / $US |
|
|
1.136 |
|
|
|
1.124 |
|
|
|
1.111 |
|
|
|