Domtar Corporation has provided an update on its financial performance for the final quarter of 2019. Domtar management expects it 2019 fourth-quarter sales to be $1.2 billion (USD) and its operating loss to be between $15 and $19 million. EBITDA before items (according to IDC, 2019) is expected to be between $74 million and $78 million. The expected operating loss in the fourth quarter of 2019 includes closure and restructuring costs of approximately $19 million and depreciation and amortization of $74 million. During the fourth quarter, the company repurchased 2.1 million shares for a total cost of approximately $75 million under its stock-repurchase program.
“Our fourth quarter results fell short of expectations,” said John D. Williams, Domtar President and Chief Executive Officer. “We increased market-related downtime to better balance our supply with our customer demand and to accelerate our inventory reduction plan. 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 then be held to discuss the results at 10 am Eastern Standard Time. Financial analysts are invited to participate in the call by dialing 1-800-367-2403. Other interested individuals are invited to listen to the live webcast at www.domtar.com.
