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Domtar Corporation Reports Preliminary Second Quarter 2018 Financial Results

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Strong results during peak maintenance outage quarter
(All financial information is in U.S. dollars, and all earnings per share results are diluted, unless otherwise noted).

  • Second quarter 2018 net earnings of $0.68 per share; earnings before items1 of $0.65 per share
  • Pulp and paper price improvement continues
  • $177 million of cash flow from operating activities

FORT MILL, S.C.–(BUSINESS WIRE)–Aug. 1, 2018– Domtar Corporation (NYSE: UFS) (TSX: UFS) today reported net earnings of $43 million ($0.68 per share) for the second quarter of 2018 compared to net earnings of $54 million ($0.86 per share) for the first quarter of 2018 and net earnings of $38 million ($0.61 per share) for the second quarter of 2017. Sales for the second quarter of 2018 were $1.4 billion.

Excluding items listed below, the Company had earnings before items1 of $41 million ($0.65 per share) for the second quarter of 2018 compared to earnings before items1 of $55 million ($0.87 per share) for the first quarter of 2018 and earnings before items1 of $38 million ($0.61 per share) for the second quarter of 2017.

Second quarter 2018 items:

  • Gain on disposal of property, plant & equipment of $3 million ($2 million after tax).

First quarter 2018 items:

  • Litigation settlement of $2 million ($2 million after tax); and
  • Gain on disposal of property, plant & equipment of $1 million ($1 million after tax).

Second quarter 2017 items:

  • None.

QUARTERLY REVIEW

“We had a solid performance in pulp and paper given the extensive scheduled maintenance outages at several facilities. Both businesses are providing us with good sales and cash flow and we are building on several important initiatives” said John D. Williams, President and Chief Executive Officer. “We continued to implement our announced price increases throughout the quarter with higher price realizations in both pulp and paper, which helped offset higher maintenance and inflation on some raw material and freight costs.”

Commenting on Personal Care, Mr. Williams added, “As expected, Personal Care results were impacted by anticipated volume reduction and continued commodity inflation. This was partially offset by strong cost savings and reduced overhead spending. We expect to improve margins towards the end of the year as the benefits of the new customer wins flow through.”

Operating income was $62 million in the second quarter of 2018 compared to operating income of $77 million in the first quarter of 2018. Depreciation and amortization totaled $79 million in the second quarter of 2018.

Operating income before items1 was $59 million in the second quarter of 2018 compared to an operating income before items1 of $78 million in the first quarter of 2018.

                 
(In millions of dollars)   2Q 2018     1Q 2018  
                 
Sales   $ 1,353     $ 1,345  
Operating income (loss)                
Pulp and Paper segment     79       76  
Personal Care segment     2       8  
Corporate     (19 )     (7 )
Total operating income     62       77  
Operating income before items1     59       78  
Depreciation and amortization     79       79  

The decrease in operating income in the second quarter of 2018 was the result of higher maintenance costs, higher selling, general and administrative expenses, lower volume and unfavorable productivity. These factors were partially offset by higher average selling prices for pulp and paper and lower energy costs.

When compared to the first quarter of 2018, manufactured paper shipments were down 2% and pulp shipments increased 1%. The shipments-to-production ratio for paper was 102% in the second quarter of 2018, compared to 104% in the first quarter of 2018. Paper inventories decreased by 15,000 tons, and pulp inventories decreased by 26,000 metric tons when compared to the first quarter of 2018.

LIQUIDITY AND CAPITAL

Cash flow from operating activities amounted to $177 million and capital expenditures were $37 million, resulting in free cash flow1 of $140 million for the second quarter of 2018. Domtar’s net debt-to-total capitalization ratio1 stood at 25% at June 30, 2018 compared to 28% at March 31, 2018.

OUTLOOK

For the remainder of the year, we expect our paper shipments to trend better than market given the announced industry capacity closures. The announced price increases in paper are expected to continue to positively impact results in the second half of 2018. Pulp will benefit from lower planned maintenance costs and we expect prices will continue to trend positively. Personal Care results should improve towards the end of the year as the benefits of the new customer wins flow through. We expect moderate inflation in our costs for the second half of the year.

EARNINGS CONFERENCE CALL

The Company will hold a conference call today at 10:00 a.m. (ET) to discuss its second quarter 2018 financial results. Financial analysts are invited to participate in the call by dialing 1 (800) 499-4035 (toll free – North America) or 1 (416) 204-9269 (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 2018 earnings results on November 1, 2018 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 $5.1 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 2017 as filed with the SEC and as updated by subsequently filed Form 10-Qs. 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 ended     Three months ended     Six months ended     Six months ended  
    June 30,     June 30,     June 30,     June 30,  
    2018     2017     2018     2017  
    (Unaudited)  
    $     $     $     $  
                                 
Selected Segment Information                                
Sales (1)                                
Pulp and Paper     1,123       999       2,223       2,072  
Personal Care     247       238       509       485  
Total for reportable segments     1,370       1,237       2,732       2,557  
Intersegment sales     (17 )     (16 )     (34 )     (34 )
Consolidated sales     1,353       1,221       2,698       2,523  
Depreciation and amortization                                
Pulp and Paper     61       63       122       127  
Personal Care     18       16       36       32  
Consolidated depreciation and amortization     79       79       158       159  
Operating income (loss)(2)                                
Pulp and Paper     79       62       155       92  
Personal Care     2       13       10       29  
Corporate     (19 )     (13 )     (26 )     (21 )
Consolidated operating income     62       62       139       100  
Interest expense, net     16       17       32       34  
Non-service components of net periodic benefit cost     (5 )     (2 )     (9 )     (6 )
Earnings before income taxes     51       47       116       72  
Income tax expense     8       9       19       14  
Net earnings     43       38       97       58  
Per common share (in dollars)                                
Net earnings                                
Basic     0.68       0.61       1.54       0.93  
Diluted     0.68       0.61       1.54       0.93  
Weighted average number of common

shares outstanding (millions)

                               
Basic     62.9       62.6       62.8       62.6  
Diluted     63.2       62.7       63.1       62.7  
Cash flows from operating activities     177       121       267       212  
Additions to property, plant and equipment     37       37       62       71  

(1) As a result of adopting ASU 2014-09 “Revenue from Contracts with Customers,” the Company has revised its 2017 segment disclosures to conform to the new guideline. (Previously reported numbers for Sales for the three and six months ended June 30, 2017 were as follows: Pulp and Paper: $999 million and $2,072 million, respectively; Personal Care: $241 million and $490 million, respectively; Intersegment sales: $(16) million and $(34) million, respectively.)

(2) As a result of adopting ASU 2017-07 “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost,” the Company has revised its 2017 segment disclosures to conform to the new guideline. (Previously reported numbers for Operating income (loss) for the three and six months ended June 30, 2017 were as follows: Pulp and Paper: $65 million and $99 million, respectively; Personal Care: $13 million and $29 million, respectively; Corporate: $(14) million and $(22) million, respectively.)

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

    Three months ended     Three months ended     Six months ended     Six months ended  
    June 30,     June 30,     June 30,     June 30,  
    2018     2017     2018     2017  
    (Unaudited)  
    $     $     $     $  
                                 
Sales     1,353       1,221       2,698       2,523  
Operating expenses                                
Cost of sales, excluding depreciation and amortization     1,096       971       2,180       2,050  
Depreciation and amortization     79       79       158       159  
Selling, general and administrative     118       107       228       213  
Other operating (income) loss, net     (2 )     2       (7 )     1  
      1,291       1,159       2,559       2,423  
Operating income     62       62       139       100  
Interest expense, net     16       17       32       34  
Non-service components of net periodic benefit cost     (5 )     (2 )     (9 )     (6 )
Earnings before income taxes     51       47       116       72  
Income tax expense     8       9       19       14  
Net earnings     43       38       97       58  
Per common share (in dollars)                                
Net earnings                                
Basic     0.68       0.61       1.54       0.93  
Diluted     0.68       0.61       1.54       0.93  
Weighted average number of common

shares outstanding (millions)

                               
Basic     62.9       62.6       62.8       62.6  
Diluted     63.2       62.7       63.1       62.7  

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

       
    June 30,     December 31,  
    2018     2017  
    (Unaudited)  
    $     $  
Assets                
Current assets                
Cash and cash equivalents     264       139  
Receivables, less allowances of $6 and $7     667       704  
Inventories     756       757  
Prepaid expenses     35       33  
Income and other taxes receivable     21       24  
Total current assets     1,743       1,657  
Property, plant and equipment, net     2,629       2,765  
Intangible assets, net     614       633  
Other assets     159       157  
Total assets     5,145       5,212  
Liabilities and shareholders’ equity                
Current liabilities                
Bank indebtedness     1        
Trade and other payables     722       716  
Income and other taxes payable     29       24  
Long-term debt due within one year     1       1  
Total current liabilities     753       741  
Long-term debt     1,103       1,129  
Deferred income taxes and other     475       491  
Other liabilities and deferred credits     356       368  
Shareholders’ equity                
Common stock     1       1  
Additional paid-in capital     1,977       1,969  
Retained earnings     891       849  
Accumulated other comprehensive loss     (411 )     (336 )
Total shareholders’ equity     2,458       2,483  
Total liabilities and shareholders’ equity     5,145       5,212  

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

    For the six months ended  
    June 30, 2018     June 30, 2017  
    (Unaudited)  
    $     $  
Operating activities                
Net earnings     97       58  
Adjustments to reconcile net earnings to cash flows from operating activities                
Depreciation and amortization     158       159  
Deferred income taxes and tax uncertainties     (5 )     (12 )
Net gains on disposals of property, plant and equipment     (4 )      
Stock-based compensation expense     5       3  
Other     (1 )      
Changes in assets and liabilities                
Receivables     27       11  
Inventories     (10 )     10  
Prepaid expenses     (11 )     (4 )
Trade and other payables     1       (35 )
Income and other taxes     9       21  
Difference between employer pension and other post-retirement

contributions and pension and other post-retirement expense

    (1 )      
Other assets and other liabilities     2       1  
Cash flows from operating activities     267       212  
Investing activities                
Additions to property, plant and equipment     (62 )     (71 )
Proceeds from disposals of property, plant and equipment     4        
Other     (6 )      
Cash flows used for investing activities     (64 )     (71 )
Financing activities                
Dividend payments     (53 )     (52 )
Net change in bank indebtedness           (12 )
Change in revolving credit facility           (30 )
Proceeds from receivables securitization facility           25  
Repayments of receivables securitization facility     (25 )     (15 )
Repayments of long-term debt           (63 )
Other     2       (1 )
Cash flows used for financing activities     (76 )     (148 )
Net increase (decrease) in cash and cash equivalents     127       (7 )
Impact of foreign exchange on cash     (2 )     6  
Cash and cash equivalents at beginning of period     139       125  
Cash and cash equivalents at end of period     264       124  
Supplemental cash flow information                
Net cash payments for:                
Interest     28       31  
Income taxes     25       15  

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.

            2018     2017  
            Q1     Q2     YTD     Q1     Q2     Q3     Q4     Year  
Reconciliation of “Earnings before items” to Net earnings (loss)                                                                    
    Net earnings (loss)   ($)     54       43       97       20       38       70       (386 )     (258 )
  (+) Impairment of goodwill   ($)                                         573       573  
  (+) Closure and restructuring costs   ($)                                         1       1  
  (+) Litigation settlement   ($)     2             2                                
  (-) Net gains on disposals of property, plant and equipment   ($)     (1 )     (2 )     (3 )                 (3 )     (8 )     (11 )
  (-) Reversal of contingent consideration   ($)                                   (2 )           (2 )
  (-) U.S. Tax Reform   ($)                                         (140 )     (140 )
  (=) Earnings before items   ($)     55       41       96       20       38       65       40       163  
  (/) Weighted avg. number of common shares outstanding (diluted)   (millions)     62.9       63.2       63.1       62.8       62.7       62.9       62.7       62.7  
  (=) Earnings before items per diluted share   ($)     0.87       0.65       1.52       0.32       0.61       1.03       0.64       2.60  
                                                                         
Reconciliation of “EBITDA” and “EBITDA before items” to

Net earnings (loss)

                                                                   
    Net earnings (loss)   ($)     54       43       97       20       38       70       (386 )     (258 )
  (+) Income tax expense (benefit)   ($)     11       8       19       5       9       3       (142 )     (125 )
  (+) Interest expense, net   ($)     16       16       32       17       17       16       16       66  
  (+) Depreciation and amortization   ($)     79       79       158       80       79       80       82       321  
  (+) Impairment of goodwill   ($)                                         578       578  
  (-) Net gains on disposals of property, plant and equipment   ($)     (1 )     (3 )     (4 )                 (4 )     (9 )     (13 )
  (=) EBITDA   ($)     159       143       302       122       143       165       139       569  
  (/) Sales   ($)     1,345       1,353       2,698       1,302       1,221       1,290       1,335       5,148  
  (=) EBITDA margin   (%)     12 %     11 %     11 %     9 %     12 %     13 %     10 %     11 %
    EBITDA   ($)     159       143       302       122       143       165       139       569  
  (+) Closure and restructuring costs   ($)                                         2       2  
  (+) Litigation settlement   ($)     2             2                                
  (-) Reversal of contingent consideration   ($)                                   (2 )           (2 )
  (=) EBITDA before items   ($)     161       143       304       122       143       163       141       569  
  (/) Sales   ($)     1,345       1,353       2,698       1,302       1,221       1,290       1,335       5,148  
  (=) EBITDA margin before items   (%)     12 %     11 %     11 %     9 %     12 %     13 %     11 %     11 %
                                                                         
Reconciliation of “Free cash flow” to Cash flows from operating activities                                                                    
    Cash flows from operating activities   ($)     90       177       267       91       121       112       125       449  
  (-) Additions to property, plant and equipment   ($)     (25 )     (37 )     (62 )     (34 )     (37 )     (40 )     (71 )     (182 )
  (=) Free cash flow   ($)     65       140       205       57       84       72       54       267  
                                                                         
“Net debt-to-total capitalization” computation                                                                    
    Bank indebtedness   ($)           1               2                            
  (+) Long-term debt due within one year   ($)     1       1               64       1       1       1          
  (+) Long-term debt   ($)     1,103       1,103               1,188       1,203       1,164       1,129          
  (=) Debt   ($)     1,104       1,105               1,254       1,204       1,165       1,130          
  (-) Cash and cash equivalents   ($)     (152 )     (264 )             (111 )     (124 )     (143 )     (139 )        
  (=) Net debt   ($)     952       841               1,143       1,080       1,022       991          
  (+) Shareholders’ equity   ($)     2,493       2,458               2,685       2,770       2,886       2,483          
  (=) Total capitalization   ($)     3,445       3,299               3,828       3,850       3,908       3,474          
    Net debt   ($)     952       841               1,143       1,080       1,022       991          
  (/) Total capitalization   ($)     3,445       3,299               3,828       3,850       3,908       3,474          
  (=) Net debt-to-total capitalization   (%)     28 %     25 %             30 %     28 %     26 %     29 %        

“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), 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 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   YTD   Q1’18   Q2’18   Q3’18   Q4’18   YTD   Q1’18   Q2’18   Q3’18   Q4’18   YTD   Q1’18   Q2’18   Q3’18   Q4’18   YTD
Reconciliation of Operating income (loss)

to “Operating income (loss) before items”

                                                                                   
 

 

Operating income (loss)   ($)   76   79       155   8   2       10   (7)   (19)       (26)   77   62       139
 

(-)

Net gains on disposals of property, plant and

equipment

  ($)   (1)   (3)       (4)                       (1)   (3)       (4)
  (+) Litigation settlement   ($)                       2         2   2         2
  (=) Operating income (loss) before items   ($)   75   76       151   8   2       10   (5)   (19)       (24)   78   59       137
                                                                                         
Reconciliation of “Operating income (loss)

before items” to “EBITDA before items”

                                                                                   
    Operating income (loss) before items   ($)   75   76       151   8   2       10   (5)   (19)       (24)   78   59       137
  (+) Non-service components of net periodic benefit cost   ($)   4   6       10               (1)       (1)   4   5       9
  (+) Depreciation and amortization   ($)   61   61       122   18   18       36             79   79       158
  (=) EBITDA before items   ($)   140   143       283   26   20       46   (5)   (20)       (25)   161   143       304
  (/) Sales   ($)   1,100   1,123       2,223   262   247       509             1,362   1,370       2,732
  (=) EBITDA margin before items   (%)   13%   13%       13%   10%   8%       9%             12%   10%       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 2017
(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
            Q1’17   Q2’17   Q3’17   Q4’17   Year   Q1’17   Q2’17   Q3’17   Q4’17   Year   Q1’17   Q2’17   Q3’17   Q4’17   Year   Q1’17   Q2’17   Q3’17   Q4’17   Year

Reconciliation of Operating income (loss)

to “Operating income (loss) before items”

                                                                                   
    Operating income (loss)   ($)   30   62   89   56   237   16   13   8   (564)   (527)   (8)   (13)   (12)   (5)   (38)   38   62   85   (513)   (328)
  (+) Impairment of goodwill   ($)                   578   578                   578   578
  (-)

Net gains on disposals of property, plant and equipment

 

  ($)       (4)     (4)                   (9)   (9)       (4)   (9)   (13)
  (-) Reversal of contingent consideration   ($)                           (2)     (2)       (2)     (2)
  (+) Closure and restructuring costs   ($)                   2   2                   2   2
  (=) Operating income (loss) before items   ($)   30   62   85   56   233   16   13   8   16   53   (8)   (13)   (14)   (14)   (49)   38   62   79   58   237
                                                                                         
Reconciliation of “Operating income (loss)

before items” to “EBITDA before items”

                                                                                   
    Operating income (loss) before items   ($)   30   62   85   56   233   16   13   8   16   53   (8)   (13)   (14)   (14)   (49)   38   62   79   58   237
  (+) Non-service components of net periodic benefit cost   ($)   4   3   4   2   13               (1)     (1)   (2)   4   2   4   1   11
  (+) Depreciation and amortization   ($)   64   63   63   64   254   16   16   17   18   67             80   79   80   82   321
  (=) EBITDA before items   ($)   98   128   152   122   500   32   29   25   34   120   (8)   (14)   (14)   (15)   (51)   122   143   163   141   569
  (/) Sales   ($)   1,073   999   1,054   1,090   4,216   247   238   251   260   996             1,320   1,237   1,305   1,350   5,212
  (=) EBITDA margin before items   (%)   9%   13%   14%   11%   12%   13%   12%   10%   13%   12%             9%   12%   12%   10%   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
Supplemental Segmented Information
(In millions of dollars, unless otherwise noted)

        2018     2017  
        Q1     Q2     YTD     Q1     Q2     Q3     Q4     Year  
Pulp and Paper Segment                                                                    
Sales   ($)     1,100       1,123       2,223       1,073       999       1,054       1,090       4,216  
Operating income   ($)     76       79       155       30       62       89       56       237  
Depreciation and

amortization

  ($)     61       61       122       64       63       63       64       254  
Paper                                                                    
Paper Production   (‘000 ST)     739       739       1,478       709       715       745       724       2,893  
Paper Shipments –

Manufactured

  (‘000 ST)     769       754       1,523       745       698       722       726       2,891  
Communication Papers   (‘000 ST)     640       615       1,255       622       582       597       600       2,401  
Specialty and Packaging

Papers

  (‘000 ST)     129       139       268       123       116       125       126       490  
Paper Shipments – Sourced

from 3rd parties

  (‘000 ST)     28       26       54       29       26       29       25       109  
Paper Shipments – Total   (‘000 ST)     797       780       1,577       774       724       751       751       3,000  
Pulp                                                                    
Pulp Shipments(a)   (‘000 ADMT)     374       377       751       453       383       424       462       1,722  
Pulp Shipments mix(b):                                                                    
Hardwood Kraft Pulp   (%)     4 %     3 %     4 %     4 %     3 %     7 %     5 %     5 %
Softwood Kraft Pulp   (%)     58 %     56 %     57 %     67 %     62 %     61 %     54 %     61 %
Fluff Pulp   (%)     38 %     41 %     39 %     29 %     35 %     32 %     41 %     34 %
                                                                     
Personal Care Segment                                                                    
Sales   ($)     262       247       509       247       238       251       260       996  
Operating income (loss)   ($)     8       2       10       16       13       8       (564 )     (527 )
Depreciation and

amortization

  ($)     18       18       36       16       16       17       18       67  
Impairment of goodwill   ($)                                         578       578  
                                                                     
Average Exchange Rates   $US / $CAN     1.264       1.290       1.277       1.323       1.344       1.253       1.272       1.297  
    $CAN / $US     0.791       0.775       0.783       0.756       0.744       0.798       0.786       0.771  
    € / $US     1.229       1.192       1.211       1.066       1.100       1.175       1.178       1.130  

(a) Figures represent Pulp Shipments to third parties.

(b) Percentages include Pulp Shipments to our Personal Care segment.

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

Domtar Corporation
INVESTOR RELATIONS
Nicholas Estrela
Director
Investor Relations
Tel.: 514-848-5049
or
MEDIA RELATIONS
David Struhs
Vice-President
Corporate Services and Sustainability
Tel.: 803-802-8031

 

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