FORT MILL, S.C. - Domtar Corporation today provided an update on its financial performance for the first quarter of 2016. Domtar's management expects sales to be $1,287 million and estimates the operating profit to be between $16 and $19 million. EBITDA before items1 will be between $128 and $131 million.
Estimated operating profit in the first quarter of 2016 includes an impairment of property, plant and equipment of $21 million, closure and restructuring costs of $2 million and depreciation and amortization of $89 million. Adjusting estimated operating profit for these three amounts yields EBITDA before items1.
"We had extensive planned maintenance outages across our mill network in the first quarter. Within the shutdowns, we came across a number of unexpected issues that resulted in longer than anticipated outages, leading to higher planned maintenance and related costs," said John D. Williams, President and Chief Executive Officer. "Nonetheless, the issues were mostly related to specific incidents and they are now behind us."