Domtar Corporation Reports Preliminary Third Quarter 2017 Financial Results

Solid quarter led by a strong performance in Pulp and Paper
(All financial information is in U.S. dollars, and all earnings per share results are diluted, unless otherwise noted).

  • Third quarter 2017 net earnings of $1.11 per share
  • Price increases announced for several pulp and paper grades
  • $112 million of cash flow from operating activities

FORT MILL, S.C.–(BUSINESS WIRE)–Oct. 27, 2017– Domtar Corporation (NYSE: UFS) (TSX: UFS) today reported net earnings of $70 million ($1.11 per share) for the third quarter of 2017 compared to net earnings of $38 million ($0.61 per share) for the second quarter of 2017 and net earnings of $59 million ($0.94 per share) for the third quarter of 2016. Sales for the third quarter of 2017 were $1.3 billion.

Excluding items listed below, the Company had earnings before items1 of $65 million ($1.03 per share) for the third quarter of 2017 compared to earnings before items1 of $38 million ($0.61 per share) for the second quarter of 2017 and earnings before items1 of $71 million ($1.13 per share) for the third quarter of 2016.

Third quarter 2017 items:

  • Gain on disposal of property, plant & equipment of $4 million ($3 million after tax); and
  • Partial reversal of contingent consideration related to an acquisition of $2 million ($2 million after tax).

Second quarter 2017 items:

  • None.

Third quarter 2016 items:

  • Impairment of property, plant & equipment of $5 million ($4 million after tax); and
  • Closure and restructuring costs of $10 million ($8 million after tax).

QUARTERLY REVIEW

“We continue to generate strong EBITDA and cash flow in our Pulp and Paper business while taking further measures to optimize our assets and improve our manufacturing processes,” said John D. Williams, President and Chief Executive Officer. “Our mills ran well and productivity was strong, resulting in a good cost performance across our network. Our paper shipments improved seasonally while momentum continued in both volume and price in our pulp business.”

Commenting on Personal Care, Mr. Williams added, “Price pressure and raw material headwinds negatively impacted margins in the quarter but we achieved a 9% increase in infant diaper volumes, we are delivering cost savings and our sales pipeline remains strong. We continue to execute our strategies for long-term success, while focusing on near-term growth opportunities as we operate in a competitive environment.”

Operating income was $89 million in the third quarter of 2017 compared to operating income of $64 million in the second quarter of 2017. Depreciation and amortization totaled $80 million in the third quarter of 2017.

Operating income before items1 was $83 million in the third quarter of 2017 compared to an operating income before items1 of $64 million in the second quarter of 2017.

                 
(In millions of dollars)   3Q 2017     2Q 2017  
                 
Sales   $ 1,292     $ 1,224  
Operating income (loss)                
Pulp and Paper segment     93       65  
Personal Care segment     8       13  
Corporate     (12 )     (14 )
Total operating income     89       64  
Operating income before items1     83       64  
Depreciation and amortization     80       79  

The increase in operating income in the third quarter of 2017 was the result of higher volume and average selling prices, favorable productivity, and lower maintenance and raw material costs. These factors were partially offset by unfavorable exchange rates and higher selling, general and administrative expenses.

When compared to the second quarter of 2017, manufactured paper shipments were up 3% and pulp shipments increased 11%. The shipments-to-production ratio for paper was 97% in the third quarter of 2017, compared to 98% in the second quarter of 2017. Paper inventories increased by 24,000 tons and pulp inventories increased by 32,000 metric tons when compared to the second quarter of 2017.

LIQUIDITY AND CAPITAL

Cash flow from operating activities amounted to $112 million and capital expenditures were $40 million, resulting in free cash flow1 of $72 million for the third quarter of 2017. Domtar’s net debt-to-total capitalization ratio1 stood at 26% at September 30, 2017 compared to 28% at June 30, 2017.

OUTLOOK

In the fourth quarter, we expect higher maintenance costs in Pulp and Paper. Paper is expected to be negatively impacted by seasonally unfavorable mix while Pulp should continue to realize higher prices following recently announced price increases. Personal Care should benefit from higher volume, favorable raw material costs and seasonally lower marketing expense.

EARNINGS CONFERENCE CALL

The Company will hold a conference call today at 11:00 a.m. (ET) to discuss its third quarter 2017 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 fourth quarter 2017 earnings results on February 9, 2018 before markets open, followed by a conference call at 11:00 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 2016 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     Nine months ended     Nine months ended  
    September 30,     September 30,     September 30,     September 30,  
    2017     2016     2017     2016  
    (Unaudited)  
    $     $     $     $  
                                 
Selected Segment Information                                
Sales                                
Pulp and Paper     1,054       1,054       3,126       3,193  
Personal Care     253       231       743       675  
Total for reportable segments     1,307       1,285       3,869       3,868  
Intersegment sales     (15 )     (15 )     (49 )     (44 )
Consolidated sales     1,292       1,270       3,820       3,824  
Depreciation and amortization

of property, plant and equipment

                               
Pulp and Paper     63       71       190       216  
Personal Care     17       16       49       47  
Total for reportable segments     80       87       239       263  
Impairment of property, plant

and equipment – Pulp and Paper

          5             29  
Consolidated depreciation and amortization and

impairment of property, plant and equipment

    80       92       239       292  
                                 
Operating income (loss)                                
Pulp and Paper     93       89       192       143  
Personal Care     8       15       37       44  
Corporate     (12 )     (12 )     (34 )     (38 )
Consolidated operating income     89       92       195       149  
Interest expense, net     16       17       50       49  
Earnings before income taxes     73       75       145       100  
Income tax expense     3       16       17       19  
Net earnings     70       59       128       81  
Per common share (in dollars)                                
Net earnings                                
Basic     1.12       0.94       2.04       1.29  
Diluted     1.11       0.94       2.04       1.29  
Weighted average number of common

shares outstanding (millions)

                               
Basic     62.7       62.6       62.6       62.6  
Diluted     62.9       62.7       62.8       62.7  
Cash flows from operating activities     112       95       324       310  
Additions to property, plant and equipment     40       83       111       302  

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

    Three months ended     Three months ended     Nine months ended     Nine months ended
    September 30,     September 30,     September 30,     September 30,
    2017     2016     2017     2016
    (Unaudited)
    $     $     $     $
                               
Sales     1,292       1,270       3,820       3,824
Operating expenses                              
Cost of sales, excluding depreciation and amortization     1,012       969       3,055       3,032
Depreciation and amortization     80       87       239       263
Selling, general and administrative     118       107       337       314
Impairment of property, plant and equipment           5             29
Closure and restructuring costs           10             33
Other operating (income) loss, net     (7 )           (6 )     4
      1,203       1,178       3,625       3,675
Operating income     89       92       195       149
Interest expense, net     16       17       50       49
Earnings before income taxes     73       75       145       100
Income tax expense     3       16       17       19
Net earnings     70       59       128       81
Per common share (in dollars)                              
Net earnings                              
Basic     1.12       0.94       2.04       1.29
Diluted     1.11       0.94       2.04       1.29
Weighted average number of common

shares outstanding (millions)

                             
Basic     62.7       62.6       62.6       62.6
Diluted     62.9       62.7       62.8       62.7

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

       
    September 30,     December 31,  
    2017     2016  
    (Unaudited)  
    $     $  
Assets                
Current assets                
Cash and cash equivalents     143       125  
Receivables, less allowances of $7 and $7     659       613  
Inventories     787       759  
Prepaid expenses     47       40  
Income and other taxes receivable     13       31  
Total current assets     1,649       1,568  
Property, plant and equipment, net     2,774       2,825  
Goodwill     578       550  
Intangible assets, net     632       608  
Other assets     151       129  
Total assets     5,784       5,680  
Liabilities and shareholders’ equity                
Current liabilities                
Bank indebtedness           12  
Trade and other payables     687       656  
Income and other taxes payable     32       22  
Long-term debt due within one year     1       63  
Total current liabilities     720       753  
Long-term debt     1,164       1,218  
Deferred income taxes and other     681       675  
Other liabilities and deferred credits     333       358  
Shareholders’ equity                
Common stock     1       1  
Additional paid-in capital     1,969       1,963  
Retained earnings     1,261       1,211  
Accumulated other comprehensive loss     (345 )     (499 )
Total shareholders’ equity     2,886       2,676  
Total liabilities and shareholders’ equity     5,784       5,680  

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

    For the nine months ended  
    September 30, 2017     September 30, 2016  
    (Unaudited)  
    $     $  
Operating activities                
Net earnings     128       81  
Adjustments to reconcile net earnings to cash flows from operating activities                
Depreciation and amortization     239       263  
Deferred income taxes and tax uncertainties     (19 )     6  
Impairment of property, plant and equipment           29  
Net gains on disposals of property, plant and equipment     (4 )      
Stock-based compensation expense     6       5  
Other     1       (3 )
Changes in assets and liabilities, excluding the effect of acquisition of business                
Receivables     (28 )     19  
Inventories     (10 )     6  
Prepaid expenses     (2 )     (5 )
Trade and other payables     11       (53 )
Income and other taxes     30       (18 )
Difference between employer pension and other post-retirement

contributions and pension and other post-retirement expense

    (33 )     (16 )
Other assets and other liabilities     5       (4 )
Cash flows from operating activities     324       310  
Investing activities                
Additions to property, plant and equipment     (111 )     (302 )
Proceeds from disposals of property, plant and equipment     8        
Acquisition of business, net of cash acquired           (1 )
Other           1  
Cash flows used for investing activities     (103 )     (302 )
Financing activities                
Dividend payments     (78 )     (76 )
Stock repurchase           (10 )
Net change in bank indebtedness     (12 )     1  
Change in revolving credit facility     (50 )     60  
Proceeds from receivables securitization facility     25       140  
Repayments of receivables securitization facility     (35 )     (40 )
Repayments of long-term debt     (63 )     (40 )
Other     1       (3 )
Cash flows (used for) provided from financing activities     (212 )     32  
Net increase in cash and cash equivalents     9       40  
Impact of foreign exchange on cash     9       2  
Cash and cash equivalents at beginning of period     125       126  
Cash and cash equivalents at end of period     143       168  
Supplemental cash flow information                
Net cash payments for:                
Interest     49       50  
Income taxes     18       37  

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.

            2017     2016  
            Q1     Q2     Q3     YTD     Q1     Q2     Q3     Q4     Year  
Reconciliation of “Earnings before items” to Net earnings                                                                            
    Net earnings   ($)     20       38       70       128       4       18       59       47       128  
  (+) Impairment of property, plant and equipment   ($)                             16       2       4             22  
  (+) Closure and restructuring costs   ($)                             2       16       8       (1 )     25  
  (+) Litigation settlement   ($)                                   2                   2  
  (-) Net gains on disposals of property, plant and equipment   ($)                 (3 )     (3 )                              
  (-) Reversal of contingent consideration   ($)                 (2 )     (2 )                              
  (+) Impact of purchase accounting   ($)                                               1       1  
  (=) Earnings before items   ($)     20       38       65       123       22       38       71       47       178  
  (/) Weighted avg. number of common shares outstanding (diluted)   (millions)     62.8       62.7       62.9       62.8       62.8       62.7       62.7       62.7       62.7  
  (=) Earnings before items per diluted share   ($)     0.32       0.61       1.03       1.96       0.35       0.61       1.13       0.75       2.84  
                                                                                 
Reconciliation of “EBITDA” and “EBITDA before items” to Net earnings                                                                            
    Net earnings   ($)     20       38       70       128       4       18       59       47       128  
  (+) Income tax expense (benefit)   ($)     5       9       3       17       (3 )     6       16       10       29  
  (+) Interest expense, net   ($)     17       17       16       50       17       15       17       17       66  
  (=) Operating income   ($)     42       64       89       195       18       39       92       74       223  
  (+) Depreciation and amortization   ($)     80       79       80       239       89       87       87       85       348  
  (+) Impairment of property, plant and equipment   ($)                             21       3       5             29  
  (-) Net gains on disposals of property, plant and equipment   ($)                 (4 )     (4 )                              
  (=) EBITDA   ($)     122       143       165       430       128       129       184       159       600  
  (/) Sales   ($)     1,304       1,224       1,292       3,820       1,287       1,267       1,270       1,274       5,098  
  (=) EBITDA margin   (%)     9 %     12 %     13 %     11 %     10 %     10 %     14 %     12 %     12 %
    EBITDA   ($)     122       143       165       430       128       129       184       159       600  
  (+) Closure and restructuring costs   ($)                             2       21       10       (1 )     32  
  (+) Litigation settlement   ($)                                   2                   2  
  (-) Reversal of contingent consideration   ($)                 (2 )     (2 )                              
  (+) Impact of purchase accounting   ($)                                               1       1  
  (=) EBITDA before items   ($)     122       143       163       428       130       152       194       159       635  
  (/) Sales   ($)     1,304       1,224       1,292       3,820       1,287       1,267       1,270       1,274       5,098  
  (=) EBITDA margin before items   (%)     9 %     12 %     13 %     11 %     10 %     12 %     15 %     12 %     12 %
                                                                                 
Reconciliation of “Free cash flow” to Cash flows from operating activities                                                                            
    Cash flows from operating activities   ($)     91       121       112       324       97       118       95       155       465  
  (-) Additions to property, plant and equipment   ($)     (34 )     (37 )     (40 )     (111 )     (100 )     (119 )     (83 )     (45 )     (347 )
  (=) Free cash flow   ($)     57       84       72       213       (3 )     (1 )     12       110       118  
                                                                                 
“Net debt-to-total capitalization” computation                                                                            
    Bank indebtedness   ($)     2                           6       1             12          
  (+) Long-term debt due within one year   ($)     64       1       1               41       64       63       63          
  (+) Long-term debt   ($)     1,188       1,203       1,164               1,211       1,237       1,309       1,218          
  (=) Debt   ($)     1,254       1,204       1,165               1,258       1,302       1,372       1,293          
  (-) Cash and cash equivalents   ($)     (111 )     (124 )     (143 )             (97 )     (111 )     (168 )     (125 )        
  (=) Net debt   ($)     1,143       1,080       1,022               1,161       1,191       1,204       1,168          
  (+) Shareholders’ equity   ($)     2,685       2,770       2,886               2,736       2,716       2,754       2,676          
  (=) Total capitalization   ($)     3,828       3,850       3,908               3,897       3,907       3,958       3,844          
    Net debt   ($)     1,143       1,080       1,022               1,161       1,191       1,204       1,168          
  (/) Total capitalization   ($)     3,828       3,850       3,908               3,897       3,907       3,958       3,844          
  (=) Net debt-to-total capitalization   (%)     30 %     28 %     26 %             30 %     30 %     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 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   YTD   Q1’17   Q2’17   Q3’17   Q4’17   YTD   Q1’17   Q2’17   Q3’17   Q4’17   YTD   Q1’17   Q2’17   Q3’17   Q4’17   YTD
Reconciliation of Operating income (loss)

to “Operating income (loss) before items”

                                                                                   
    Operating income (loss)   ($)   34   65   93     192   16   13   8     37   (8)   (14)   (12)     (34)   42   64   89     195
  (-) Net gains on disposals of property, plant and

equipment

  ($)       (4)     (4)                           (4)     (4)
  (-) Reversal of contingent consideration   ($)                           (2)     (2)       (2)     (2)
  (=) Operating income (loss) before items   ($)   34   65   89     188   16   13   8     37   (8)   (14)   (14)     (36)   42   64   83     189
                                                                                         
Reconciliation of “Operating income (loss)

before items” to “EBITDA before items”

                                                                                   
    Operating income (loss) before items   ($)   34   65   89     188   16   13   8     37   (8)   (14)   (14)     (36)   42   64   83     189
  (+) Depreciation and amortization   ($)   64   63   63     190   16   16   17     49             80   79   80     239
                                                                                         
  (=) EBITDA before items   ($)   98   128   152     378   32   29   25     86   (8)   (14)   (14)     (36)   122   143   163     428
  (/) Sales   ($)   1,073   999   1,054     3,126   249   241   253     743             1,322   1,240   1,307     3,869
  (=) EBITDA margin before items   (%)   9%   13%   14%     12%   13%   12%   10%     12%             9%   12%   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 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 (1)   Corporate   Total
            Q1’16   Q2’16   Q3’16   Q4’16   Year   Q1’16   Q2’16   Q3’16   Q4’16   Year   Q1’16   Q2’16   Q3’16   Q4’16   Year   Q1’16   Q2’16   Q3’16   Q4’16   Year
Reconciliation of Operating income (loss)

to “Operating income (loss) before items”

                                                                                   
    Operating income (loss)   ($)   19   35   89   74   217   14   15   15   13   57   (15)   (11)   (12)   (13)   (51)   18   39   92   74   223
  (+) Impairment of property, plant and equipment   ($)   21   3   5     29                       21   3   5     29
  (+) Impact of purchase accounting   ($)                   1   1                   1   1
  (+) Closure and restructuring costs   ($)   2   21   10   (2)   31         1   1             2   21   10   (1)   32
  (+) Litigation settlement   ($)                         2       2     2       2
  (=) Operating income (loss) before items   ($)   42   59   104   72   277   14   15   15   15   59   (15)   (9)   (12)   (13)   (49)   41   65   107   74   287
                                                                                         
Reconciliation of “Operating income (loss)

before items” to “EBITDA before items”

                                                                                   
    Operating income (loss) before items   ($)   42   59   104   72   277   14   15   15   15   59   (15)   (9)   (12)   (13)   (49)   41   65   107   74   287
  (+) Depreciation and amortization   ($)   73   72   71   68   284   16   15   16   17   64             89   87   87   85   348
                                                                                         
  (=) EBITDA before items   ($)   115   131   175   140   561   30   30   31   32   123   (15)   (9)   (12)   (13)   (49)   130   152   194   159   635
  (/) Sales   ($)   1,085   1,054   1,054   1,046   4,239   216   228   231   242   917             1,301   1,282   1,285   1,288   5,156
  (=) EBITDA margin before items   (%)   11%   12%   17%   13%   13%   14%   13%   13%   13%   13%             10%   12%   15%   12%   12%

“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.

(1) On October 1, 2016, the Company acquired 100% of the shares of Home Delivery Incontinent Supplies Co. in the United States.

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

        2017     2016  
        Q1     Q2     Q3     YTD     Q1     Q2     Q3     Q4     Year  
Pulp and Paper Segment                                                                            
Sales   ($)     1,073       999       1,054       3,126       1,085       1,054       1,054       1,046       4,239  
Operating income   ($)     34       65       93       192       19       35       89       74       217  
Depreciation and

amortization

  ($)     64       63       63       190       73       72       71       68       284  
Impairment of property, plant

and equipment

  ($)                             21       3       5             29  
                                                                             
Paper                                                                            
Paper Production   (‘000 ST)     709       715       745       2,169       785       715       726       714       2,940  
Paper Shipments –

Manufactured

  (‘000 ST)     745       698       722       2,165       786       752       744       739       3,021  
Communication Papers   (‘000 ST)     622       582       597       1,801       657       627       620       618       2,522  
Specialty and Packaging

Papers

  (‘000 ST)     123       116       125       364       129       125       124       121       499  
Paper Shipments – Sourced

from 3rd parties

  (‘000 ST)     29       26       29       84       32       29       35       27       123  
Paper Shipments – Total   (‘000 ST)     774       724       751       2,249       818       781       779       766       3,144  
Pulp                                                                            
Pulp Shipments(a)   (‘000 ADMT)     453       383       424       1,260       369       360       369       415       1,513  
Pulp Shipments mix(b):                                                                            
Hardwood Kraft Pulp   (%)     4 %     3 %     7 %     5 %     5 %     4 %     4 %     8 %     5 %
Softwood Kraft Pulp   (%)     67 %     62 %     61 %     63 %     66 %     61 %     63 %     63 %     63 %
Fluff Pulp   (%)     29 %     35 %     32 %     32 %     29 %     35 %     33 %     29 %     32 %
                                                                             
Personal Care Segment                                                                            
Sales   ($)     249       241       253       743       216       228       231       242       917  
Operating income   ($)     16       13       8       37       14       15       15       13       57  
Depreciation and

amortization

  ($)     16       16       17       49       16       15       16       17       64  
                                                                             
Average Exchange Rates   $US / $CAN     1.323       1.344       1.253       1.305       1.375       1.289       1.305       1.333       1.325  
    $CAN / $US     0.756       0.744       0.798       0.766       0.727       0.776       0.766       0.750       0.755  
    € / $US     1.066       1.100       1.175       1.114       1.103       1.130       1.116       1.078       1.107  

(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, 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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