Domtar Provides a Business Update
January 24 2020 - 6:45AM
Business Wire
(All financial information is in U.S. dollars, unless otherwise
noted)
Domtar Corporation (NYSE: UFS) (TSX: UFS) today provided an
update on its financial performance for the fourth quarter 2019.
Domtar’s management expects fourth quarter 2019 sales to be $1.2
billion and the operating loss to be between $15 and $19 million.
EBITDA before items1 is expected to be between $74 and $78
million.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20200124005093/en/
The expected operating loss in the fourth quarter 2019 includes
closure and restructuring costs of approximately $19 million and
depreciation and amortization of $74 million. Adjusting the
estimated operating loss for these two amounts yields EBITDA before
items1.
During the fourth quarter, the Company repurchased 2.1 million
shares for a total cost of approximately $75 million under our
stock repurchase program.
“Our fourth quarter results fell short of expectations. We
increased market-related downtime to better balance our supply with
our customer demand and to accelerate our inventory reduction
plan,” said John D. Williams, President and Chief Executive
Officer. “Our inventories are now at optimal levels and our
expectation is that our business will return to a balanced level in
early 2020 given recent capacity closures.”
The Company will release its fourth quarter and fiscal year 2019
financial results before markets open on Friday, February 7, 2020.
A conference call will be held to discuss the results at 10:00 a.m.
(ET). Financial analysts are invited to participate in the call by
dialing 1-800-367-2403. Media and other interested individuals are
invited to listen to the live webcast at www.domtar.com.
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 $5.2 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 are
“forward-looking statements.” Actual results may differ materially
from those suggested by these statements for a number of reasons,
including changes in customer demand and pricing, changes in
manufacturing costs, future acquisitions and divestitures,
including facility closings, and the other reasons identified under
“Risk Factors” in our Form 10-K for 2018 as filed with the 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.
1 on-GAAP financial measure. EBITDA before items is presented as
a complement to enhance the understanding of operating results but
not in substitution for GAAP results.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200124005093/en/
Investor Relations Nicholas Estrela Director Investor
Relations Tel.: 514-848-5049
Domtar (NYSE:UFS)
Historical Stock Chart
From Mar 2024 to Apr 2024
Domtar (NYSE:UFS)
Historical Stock Chart
From Apr 2023 to Apr 2024