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Domtar Corporation Reports Preliminary Q1 Results

Friday, April 25, 2014

Press release from the issuing company

MONTREAL - Domtar Corporation today reported net earnings of $39 million ($1.20 per share) for the first quarter of 2014 compared to net earnings of $65 million ($2.00 per share) for the fourth quarter of 2013 and net earnings of $45 million ($1.29 per share) for the first quarter of 2013. Sales for the first quarter of 2014 were $1,394 million.

Excluding items listed below, the Company had earnings before items1 of $42 million ($1.29 per share) for the first quarter of 2014 compared to earnings before items1 of $68 million ($2.09 per share) for the fourth quarter of 2013 and earnings before items1 of $33 million($0.95 per share) for the first quarter of 2013.

First quarter 2014 items:

  • Closure and restructuring costs of $1 million ($1 million after tax); and
  • Negative impact of purchase accounting of $3 million ($2 million after tax).

Fourth quarter 2013 items:

  • Net gain on sale of property, plant and equipment and business of $5 million ($4 million after tax); and
  • Charge of $7 million ($7 million after tax) for impairment of property, plant and equipment.

First quarter 2013 items:

  • Conversion of $26 million ($18 million after tax) of alternative fuel tax credits into cellulosic biofuel producer income tax credits of $55 million ($33 million after tax) resulting in a net gain after tax of $15 million;
  • Charge of $10 million ($7 million after tax) related to the impairment and write-down of property, plant and equipment;
  • Gain on the sale of property, plant and equipment of $10 million ($6 million after tax); and
  • Premium paid and costs related to the debt repurchase of $3 million ($2 million after tax).

Commenting on the first quarter results, John D. Williams, President and Chief Executive Officer, said, "Severe winter weather across much of the eastern part of North America negatively impacted some of our pulp and paper operations. In particular, our mills experienced greater than normal energy and fiber costs and reduced productivity. Nonetheless, we benefited from higher pulp and paper prices with the successful implementation of price increases."

Mr. Williams added, "The integration of Indas is progressing well and the business performed in line with our expectations in the first quarter. I am pleased with the progress made so far in our Personal Care division, despite some erosion of sales in our baby diaper business. We are well underway with our adult incontinence organic growth plan and our teams are moving fast in the deployment of new machinery to begin manufacturing product-for-sale by the end of the fourth quarter. We are bringing new production online to provide the capacity and the product mix required to better serve our targeted customers."

Full Release

 

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