Domtar Corporation Reports Preliminary Second Quarter 2016 Financial Results

Strong execution and higher prices drive solid results
(All financial information is in U.S. dollars, and all earnings per share results are diluted, unless otherwise noted).

  • Second quarter 2016 net earnings of $0.29 per share; earnings before items1 of $0.61 per share
  • Personal Care sales growth of 6% year-over-year
  • Announced a 4% increase to quarterly dividend

FORT MILL, S.C.–(BUSINESS WIRE)–Jul. 27, 2016– Domtar Corporation (NYSE: UFS) (TSX: UFS) today reported net earnings of $18 million ($0.29 per share) for the second quarter of 2016 compared to net earnings of $4 million ($0.06 per share) for the first quarter of 2016 and net earnings of $38 million ($0.60 per share) for the second quarter of 2015. Sales for the second quarter of 2016 were $1.3 billion.

Excluding items listed below, the Company had earnings before items1 of $38 million ($0.61 per share) for the second quarter of 2016 compared to earnings before items1 of $22 million ($0.35 per share) for the first quarter of 2016 and earnings before items1 of $39 million ($0.61 per share) for the second quarter of 2015.

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).

First quarter 2016 items:

  • Closure and restructuring costs of $2 million ($2 million after tax); and
  • Impairment of property, plant & equipment of $21 million ($16 million after tax).

Second quarter 2015 items:

  • Closure and restructuring costs of $1 million ($1 million after tax);
  • Gain on disposal of property, plant and equipment of $14 million ($11 million after tax); and
  • Impairment of property, plant & equipment of $18 million ($11 million after tax).

“We had a solid performance given the extensive scheduled maintenance outages and the Ashdown conversion. Our focus on costs and execution resulted in below-plan maintenance spending, and we benefited from higher pulp and paper prices with the implementation of recently announced price increases,” said John D. Williams, President and Chief Executive Officer. “The conversion of the Ashdown paper machine to fluff pulp continues to progress, with the start-up scheduled over the next few days. This is another milestone within our strategic roadmap of pursuing growth opportunities that capitalize on our core competencies.”

Mr. Williams added, “In Personal Care, our sales momentum continues to build, with sales increasing 6% year-over-year as a result of new customer wins. During the quarter, we continued to reinvest in growth, mostly to complete our product assortment, enhance consumer and category insights and deliver innovation to secure additional sales expansion.”

QUARTERLY REVIEW

Operating income was $39 million in the second quarter of 2016 compared to operating income of $18 million in the first quarter of 2016. Depreciation and amortization totaled $87 million in the second quarter of 2016.

Operating income before items1 was $65 million in the second quarter of 2016 compared to an operating income before items1 of $41 million in the first quarter of 2016.

(In millions of dollars)   2Q 2016   1Q 2016
             
Sales   $ 1,267   $ 1,287
Operating income (loss)            
Pulp and Paper segment     35     19
Personal Care segment     15     14
Corporate    

(11)

   

(15)

Total operating income     39     18
Operating income before items1     65     41
Depreciation and amortization     87     89

The increase in operating income in the second quarter of 2016 was the result of lower impairment of property, plant & equipment charge, higher average selling prices, lower raw material costs, lower freight costs and lower maintenance and other costs. These factors were partially offset by higher closure and restructuring costs, lower volumes, unfavorable exchange rates and a litigation settlement.

When compared to the first quarter of 2016, manufactured paper shipments were down 4.3% and pulp shipments decreased 2.4%. The shipments-to-production ratio for paper was 105% in the second quarter of 2016, compared to 100% in the first quarter of 2016. Paper inventories decreased by 37,000 tons and pulp inventories decreased by 16,000 metric tons when compared to the first quarter of 2016.

LIQUIDITY AND CAPITAL

Cash flow provided from operating activities amounted to $118 million and capital expenditures were $119 million, resulting in negative free cash flow1 of $1 million for the second quarter of 2016. Domtar’s net debt-to-total capitalization ratio1 stood at 30% at June 30, 2016 and at March 31, 2016.

OUTLOOK

Domtar paper shipments are expected to trend with market demand in the second half of 2016. Our paper business should continue to benefit from recently announced price increases while we expect some short-term pricing volatility in pulp. Lower maintenance activity and better productivity should positively impact results in Pulp and Paper. Personal Care results are expected to benefit from the new customer wins, market growth and cost savings from the new manufacturing platform. Raw material unit costs are expected to moderately increase.

EARNINGS CONFERENCE CALL

The Company will hold a conference call today at 10:00 a.m. (ET) to discuss its second quarter 2016 financial results. Financial analysts are invited to participate in the call by dialing 1 (800) 505-9573 (toll free – North America) or 1 (416) 204-9498 (International) at least 10 minutes before start time, while media and other interested individuals are invited to listen to the live webcast on the Domtar Corporation website at www.domtar.com.

The Company will release its third quarter 2016 earnings results on October 27, 2016 before markets open, followed by a conference call at 10:00 a.m. (ET) to discuss results. The date is tentative and will be confirmed approximately three weeks prior to the official earnings release date.

About Domtar

Domtar is a leading provider of a wide variety of fiber-based products including communication, specialty and packaging papers, market pulp and absorbent hygiene products. With approximately 10,000 employees serving more than 50 countries around the world, Domtar is driven by a commitment to turn sustainable wood fiber into useful products that people rely on every day. Domtar’s annual sales are approximately $5.3 billion and its common stock is traded on the New York and Toronto Stock Exchanges. Domtar’s principal executive office is in Fort Mill, South Carolina. To learn more, visit www.domtar.com.

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 2015 as filed with the SEC and as updated by subsequently filed Form 10-Q’s. Except to the extent required by law, we expressly disclaim any obligation to update or revise these forward-looking statements to reflect new events or circumstances or otherwise.

Domtar Corporation
Highlights
(In millions of dollars, unless otherwise noted)

    Three months   Three months   Six months   Six months
    ended   ended   ended   ended
    June 30,   June 30,   June 30,   June 30,
    2016   2015   2016   2015
    (Unaudited)
    $     $     $     $  
                         
Selected Segment Information                        
Sales                        
Pulp and Paper     1,054     1,110     2,139     2,256
Personal Care     228     216     444     434
Total for reportable segments     1,282     1,326     2,583     2,690
Intersegment sales    

(15)

   

(16)

   

(29)

   

(32)

Consolidated sales     1,267     1,310     2,554     2,658
Depreciation and amortization and impairment                        
of property, plant and equipment                        
Pulp and Paper     72     75     145     149
Personal Care     15     16     31     32
Total for reportable segments     87     91     176     181
Impairment of property, plant     3     18     24     37
and equipment – Pulp and Paper                        

Consolidated depreciation and amortization and
impairment of property, plant and equipment

    90     109     200     218
Operating income (loss)                        
Pulp and Paper     35     55     54     130
Personal Care     15     17     29     27
Corporate    

(11)

   

(10)

   

(26)

   

(24)

Consolidated operating income     39     62     57     133
Interest expense, net     15     25     32     51
Earnings before income taxes     24     37     25     82
Income tax expense (benefit)     6    

(1)

    3     8
Net earnings     18     38     22     74
Per common share (in dollars)                        
Net earnings                        
Basic     0.29    

0.60

    0.35     1.16
Diluted     0.29    

0.60

    0.35     1.16

Weighted average number of common shares outstanding (millions)

                       
Basic     62.6     63.6     62.7     63.7
Diluted     62.7     63.7     62.8     63.8
Cash flows provided from operating activities     118     122     215     249
Additions to property, plant and equipment     119     66     219     136

Domtar Corporation
Consolidated Statements of Earnings
(In millions of dollars, unless otherwise noted)

  Three months   Three months   Six months   Six months
  ended   ended   ended   ended
  June 30,   June 30,   June 30,   June 30,
  2016   2015   2016   2015
  (Unaudited)
  $     $     $     $  
Sales   1,267     1,310     2,554     2,658
Operating expenses                      
Cost of sales, excluding depreciation and amortization   1,013     1,052     2,063     2,114
Depreciation and amortization   87     91     176     181
Selling, general and administrative   104     99     207     199
Impairment of property, plant and   3     18     24     37
equipment                      
Closure and restructuring costs   21     1     23     2
Other operating loss (income), net      

(13)

 

 

4

 

 

(8)

    1,228     1,248     2,497     2,525
Operating income   39     62     57     133
Interest expense, net   15     25     32     51
Earnings before income taxes   24     37     25     82
Income tax expense (benefit)   6    

(1)

    3     8
Net earnings   18     38     22     74
Per common share (in dollars)                      
Net earnings                      
Basic   0.29    

0.60

    0.35     1.16
Diluted   0.29    

0.60

    0.35     1.16

Weighted average number of common shares outstanding (millions)

                     
Basic   62.6     63.6     62.7     63.7
Diluted   62.7     63.7     62.8     63.8

Domtar Corporation
Consolidated Balance Sheets at
(In millions of dollars)

    June 30,   December 31,
    2016   2015
    (Unaudited)
    $     $  
Assets            
Current assets            
Cash and cash equivalents     111     126
Receivables, less allowances of $6 and $6     608     627
Inventories     753     766
Prepaid expenses     55     21
Income and other taxes receivable     31     14
Total current assets     1,558     1,554
Property, plant and equipment, net     2,906     2,835
Goodwill     543     539
Intangible assets, net     598     601
Other assets     163     125
Total assets     5,768     5,654
Liabilities and shareholders’ equity            
Current liabilities            
Bank indebtedness     1    
Trade and other payables     693     720
Income and other taxes payable     24     27
Long-term debt due within one year     64     41
Total current liabilities     782     788
Long-term debt     1,237     1,210
Deferred income taxes and other     681     654
Other liabilities and deferred credits     352     350
Shareholders’ equity            
Common stock     1     1
Additional paid-in capital     1,959     1,966
Retained earnings     1,157     1,186
Accumulated other comprehensive loss    

(401)

   

(501)

Total shareholders’ equity     2,716     2,652
Total liabilities and shareholders’ equity     5,768     5,654

Domtar Corporation
Consolidated Statements of Cash Flows
(In millions of dollars)

  For the six months ended
  June 30, 2016     June 30, 2015  
  (Unaudited)
  $       $    
Operating activities              
Net earnings   22       74  
Adjustments to reconcile net earnings to cash flows from operating activities              
Depreciation and amortization   176       181  
Deferred income taxes and tax uncertainties   (5 )     (32 )
Impairment of property, plant and equipment   24       37  
Net gains on disposals of property, plant and equipment         (15 )
Stock-based compensation expense   3       3  
Other   (4 )      
Changes in assets and liabilities, excluding effect of acquisition of business              
Receivables   25        
Inventories   18       (23 )
Prepaid expenses   (13 )     (10 )
Trade and other payables   (8 )     (18 )
Income and other taxes   (16 )     46  

Difference between employer pension and other post-retirement
contributions and pension and other post-retirement expense

  (3 )     3  
Other assets and other liabilities   (4 )     3  
Cash flows provided from operating activities   215       249  
Investing activities              
Additions to property, plant and equipment   (219 )     (136 )
Proceeds from disposals of property, plant and equipment         7  
Acquisition of business, net of cash acquired   (1 )      
Other         9  
Cash flows used for investing activities   (220 )     (120 )
Financing activities              
Dividend payments   (50 )     (50 )
Stock repurchase   (10 )     (30 )
Net change in bank indebtedness   1       (9 )
Change in revolving bank credit facility   (50 )      
Proceeds from receivables securitization facility   120        
Repayments of receivables securitization facility   (20 )      
Repayments of long-term debt   (1 )     (2 )
Other   (1 )     1  
Cash flows used for financing activities   (11 )     (90 )
Net (decrease) increase in cash and cash equivalents   (16 )     39  
Impact of foreign exchange on cash   1       (6 )
Cash and cash equivalents at beginning of period   126       174  
Cash and cash equivalents at end of period   111       207  
Supplemental cash flow information              
Net cash payments for:              
Interest   32       48  
Income taxes paid, net   27       2  

Domtar Corporation
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.

              2016     2015
              Q1       Q2     YTD     Q1   Q2   Q3   Q4   YTD  

Reconciliation of “Earnings before items” to Net earnings

                                                             
      Net earnings   ($)   4         18     22       36     38     11     57     142  
  (+)   Impairment of property, plant and equipment   ($)   16         2     18       12     11     12     12     47  
  (+)   Closure and restructuring costs   ($)   2         16     18       1     1     1     1     4  
  (+)   Litigation settlement   ($)           2     2                        
  (-)   Net gains on disposals of property, plant and equipment   ($)                     (1 )   (11 )           (12 )
  (+)   Debt refinancing costs   ($)                             30         30  
  (=)   Earnings before items   ($)   22         38     60       48     39     54     70     211  
  (/)   Weighted avg. number of common shares outstanding (diluted)   (millions)   62.8         62.7     62.8       63.9     63.7    

63.0

    62.9     63.4  
  (=)   Earnings before items per diluted share   ($)   0.35         0.61     0.96       0.75     0.61     0.86     1.11     3.33  

Reconciliation of “EBITDA” and “EBITDA before items” to Net earnings

                                                             
      Net earnings   ($)   4         18     22       36     38     11     57     142  
  (+)   Income tax (benefit) expense   ($)   (3   )     6     3       9     (1 )   (14 )   20     14  
  (+)   Interest expense, net   ($)   17         15     32       26     25     64     17     132  
  (=)   Operating income   ($)   18         39     57       71     62     61     94     288  
  (+)   Depreciation and amortization   ($)   89         87     176       90     91     89     89     359  
  (+)   Impairment of property, plant and equipment   ($)   21         3     24       19     18     20     20     77  
  (-)   Net gains on disposals of property, plant and equipment   ($)                     (1 )   (14 )           (15 )
  (=)   EBITDA   ($)   128         129     257       179     157     170     203     709  
  (/)   Sales   ($)   1,287         1,267     2,554       1,348     1,310     1,292     1,314     5,264  
  (=)   EBITDA margin   (%)   10   %     10   % 10   %   13 %   12 %   13 %   15 %   13 %
      EBITDA   ($)   128         129     257       179     157     170     203     709  
  (+)   Closure and restructuring costs   ($)   2         21     23       1     1     1     1     4  
  (+)   Litigation settlement   ($)           2     2                        
  (=)   EBITDA before items   ($)   130         152     282       180     158     171     204     713  
  (/)   Sales   ($)   1,287         1,267     2,554       1,348     1,310     1,292     1,314     5,264  
  (=)   EBITDA margin before items   (%)   10   %     12   % 11   %   13 %   12 %   13 %   16 %   14 %

Reconciliation of “Free cash flow” to Cash flows provided from operating activities

                                                             

 

                                                               
      Cash flows provided from operating activities   ($)   97         118     215       127     122     67     137     453  
  (-)   Additions to property, plant and equipment   ($)   (100   )     (119   ) (219   )   (70 )   (66 )   (66 )   (87 )   (289 )
  (=)   Free cash flow   ($)   (3   )     (1   ) (4   )   57     56     1     50     164  
“Net debt-to-total capitalization” computation                                                              
      Bank indebtedness   ($)   6         1             6     1     1            
  (+)   Long-term debt due within one year   ($)   41         64             169     169     42     41        
  (+)   Long-term debt   ($)   1,211         1,237             1,170     1,169     1,236     1,210        
  (=)   Debt   ($)   1,258         1,302             1,345     1,339     1,279     1,251        
  (-)   Cash and cash equivalents   ($)   (97   )     (111   )         (183 )   (207 )   (128 )   (126 )      
  (=)   Net debt   ($)   1,161         1,191             1,162     1,132     1,151     1,125        
  (+)   Shareholders’ equity   ($)   2,736         2,716             2,710     2,761     2,659     2,652        
  (=)   Total capitalization   ($)   3,897         3,907             3,872     3,893     3,810     3,777        
      Net debt   ($)   1,161         1,191             1,162     1,132     1,151     1,125        
  (/)   Total capitalization   ($)   3,897         3,907             3,872     3,893     3,810     3,777        
  (=)   Net debt-to-total capitalization   (%)   30   %     30   %         30 %   29 %   30 %   30 %      

“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, Operating income 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.

Domtar Corporation
Quarterly Reconciliation of Non-GAAP Financial Measures – By Segment 2016
(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
          Q1’16   Q2’16   Q3’16   Q4’16   YTD   Q1’16   Q2’16   Q3’16   Q4’16   YTD   Q1’16   Q2’16   Q3’16   Q4’16   YTD   Q1’16   Q2’16   Q3’16   Q4’16   YTD

Reconciliation of Operating income (loss) to “Operating income (loss) before items”

                                                                                 
      Operating income (loss) ($) 19   35       54   14     15       29  

(15)

 

(11)

     

(26)

 

18

  39       57
    (+) Impairment of property, plant and equipment ($) 21   3       24                         21   3       24
    (+) Closure and restructuring costs ($) 2   21       23                         2   21       23
    (+) Litigation settlement ($)                         2       2     2       2
    (=) Operating income (loss) before items ($) 42   59       101   14     15       29  

(15)

 

(9)

     

(24)

  41   65       106

Reconciliation of “Operating income (loss) before items” to “EBITDA before items”

                                                                                 
      Operating income (loss) before items ($) 42   59       101   14     15       29  

(15)

 

(9)

     

(24)

  41   65       106
    (+) Depreciation and amortization ($) 73   72       145   16     15       31             89   87       176
                                                                                         
    (=) EBITDA before items ($) 115   131       246   30     30       60  

(15)

 

(9)

 

   

(24)

 

130

  152       282
    (/) Sales ($) 1,085   1,054       2,139   216     228       444             1,301   1,282       2,583
    (=) EBITDA margin before items (%) 11%   12%       12%   14%     13%       14%             10%   12%       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.

Domtar Corporation
Quarterly Reconciliation of Non-GAAP Financial Measures – By Segment 2015
(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
                Q1’15     Q2’15   Q3’15   Q4’15   YTD   Q1’15       Q2’15   Q3’15   Q4’15   YTD   Q1’15   Q2’15   Q3’15   Q4’15   YTD   Q1’15   Q2’15   Q3’15   Q4’15   YTD

Reconciliation of Operating income (loss) to “Operating income (loss) before items”

                                                                                         
        Operating income (loss)   ($)   75     55   54   86   270   10       17   18   16  

61

 

(14)

 

(10)

 

(11)

 

(8)

 

(43)

  71   62   61   94   288
    (+)   Impairment of property, plant and equipment   ($)   19     18   20   20   77                           19   18   20   20   77
    (-)   Net gains on disposals of property, plant and equipment   ($)      

(14)

     

(14)

 

             

(1)

 

     

(1)

 

(1)

 

(14)

     

(15)

    (+)   Closure and restructuring costs   ($)       1   1   1   3   1             1             1   1   1   1   4
    (=)   Operating income (loss) before items   ($)   94     60   75   107   336   11       17   18   16   62  

(15)

 

(10)

 

(11)

 

(8)

 

(44)

  90   67   82   115   354

Reconciliation of “Operating income (loss) before items” to “EBITDA before items”

                                                                                         
        Operating income (loss) before items   ($)   94     60   75   107   336   11       17   18   16   62  

(15)

 

(10)

 

(11)

 

(8)

 

(44)

  90   67   82   115   354
    (+)   Depreciation and amortization   ($)   74     75   75   73   297   16       16   14   16   62             90   91   89   89   359
                                                                                                   
    (=)   EBITDA before items   ($)   168     135   150   180   633   27       33   32   32   124  

(15)

 

(10)

 

(11)

 

(8)

 

(44)

  180   158   171   204   713
    (/)   Sales   ($)   1,146     1,110   1,092   1,110   4,458   218       216   214   221   869             1,364   1,326   1,306   1,331   5,327
    (=)   EBITDA margin before items   (%)   15%     12%   14%   16%   14%   12%       15%   15%   14%   14%             13%   12%   13%   15%   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.

Domtar Corporation
Supplemental Segmented Information
(In millions of dollars, unless otherwise noted)

        2016     2015
        Q1     Q2     YTD     Q1     Q2     Q3     Q4     YTD  
Pulp and Paper                                                                    
Segment                                                                    
Sales   ($)     1,085       1,054       2,139       1,146       1,110       1,092       1,110       4,458  
Operating income   ($)     19       35       54       75       55       54       86       270  
Depreciation and   ($)     73       72       145       74       75       75       73       297  
amortization                                                                    
Impairment of property,   ($)     21       3       24       19       18       20       20       77  
plant and equipment                                                                    
                                                                     
Paper                                                                    
Paper Production   (‘000 ST)     785       715       1,500       808       806       794       837       3,245  
Paper Shipments –   (‘000 ST)     786       752       1,538       804       783       779       797       3,163  
Manufactured                                                                    
Communication   (‘000 ST)     657       627       1,284       669       653       648       669       2,639  
Papers                                                                    
Specialty and   (‘000 ST)     129       125       254       135       130       131       128       524  
Packaging                                                                    
Paper Shipments –   (‘000 ST)     32       29       61       35       29       35       28       127  
Sourced from                                                                    
3rd parties                                                                    
Paper Shipments –   (‘000 ST)     818       781       1,599       839       812       814       825       3,290  
Total                                                                    
Pulp                                                                    
Pulp Shipments(a)   (‘000 ADMT)     369       360       729       350       345       333       386       1,414  
Hardwood Kraft   (%)     6   %   4 %     5 %     9 %     8 %     8 %     8 %     8 %
Pulp                                                                    
Softwood Kraft   (%)     69   %   66 %     67 %     65 %     65 %     65 %     69 %     66 %
Pulp                                                                    
Fluff Pulp   (%)     25   %   30 %     28 %     26 %     27 %     27 %     23 %     26 %
                                                                     
Personal Care                                                                    
Segment                                                                    
Sales   ($)     216       228       444       218       216       214       221       869  
Operating income   ($)     14       15       29       10       17       18       16       61  
Depreciation and   ($)     16       15       31       16       16       14       16       62  
amortization                                                                    
                                                                     
Average Exchange   $US / $CAN     1.375       1.289       1.332       1.241       1.229       1.309       1.335       1.279  
Rates                                                                    
    $CAN / $US     0.727       0.776       0.751       0.806       0.813       0.765       0.749       0.782  
    € / $US     1.103      

1.130

      1.117       1.126       1.106       1.112       1.095      

1.110

 

(a) Figures are gross of market pulp purchased from other producers on the open market for some of our paper making operations. Pulp Shipments represent the amount of pulp produced in excess of our internal requirement.

Note: the term “ST” refers to a short ton and the term “ADMT” refers to an air dry metric ton.

1 Non-GAAP financial measure. Refer to the Reconciliation of Non-GAAP Financial Measures in the appendix.

 

Source: Domtar Corporation

INVESTOR RELATIONS
Nicholas Estrela, 514-848-5555 x 85979
Director
Investor Relations
or
MEDIA RELATIONS
David Struhs, 803-802-8031
Vice-President
Corporate Services and Sustainability

 

 

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