(All financial information is in U.S. dollars, unless otherwise noted)

Fort Mill, S.C. – Domtar Corporation 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.

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.