Domtar Provides Business Update
MONTREAL, July 12, 2013
Company to release second quarter of 2013 financial results on July 25, 2013
(All financial information is in U.S. dollars, unless otherwise noted.)
(NYSE: UFS) (TSX: UFS)
MONTREAL, July 12, 2013 /PRNewswire/ - Domtar Corporation (NYSE: UFS) (TSX:
UFS) today provided an update on its financial performance for the second
quarter of 2013. Domtar's management expects sales to be $1,312 million and
estimates the operating loss to be between $30 and $35 million.
EBITDA before items^1 will be between $130 and $135 million primarily due to a
combination of costs related to maintenance shutdowns, lower pulp
productivity, lower paper and pulp shipments and higher costs for freight.
During the second quarter of 2013, paper and pulp shipments stood at 801,000
tons and 344,000 metric tons, respectively.
Estimated operating loss in the second quarter of 2013 includes a litigation
settlement charge of $49million, closure and restructuring costs of $18
million, a charge of $5 million related to the impairment and write-down of
property, plant and equipment, and depreciation and amortization of
$93million. Adjusting estimated operating loss for these four amounts yields
EBITDA before items^1.
"We had sub optimal pulp productivity and unusually high costs due to
significant planned maintenance and delayed restarts in our pulp mills." said
John D. Williams, President and Chief Executive Officer. "However, a closer
look at our operations demonstrates that by quarter end we made very good
progress on addressing production issues in the Pulp and Paper business. We
remain confident that we will return to more normalized productivity levels
across the business by the end of the third quarter."
Domtar will release its second quarter of 2013 financial results before
markets open on Thursday, July25, 2013. A conference call will be held to
discuss the results at 10:00 a.m. (ET) the same day. Financial analysts are
invited to participate in the call by dialing 1-866-321-8231 (North America)
or 1-416-642-5213 (International). Media and other interested individuals are
invited to listen to the live webcast at www.domtar.com. A replay will be
available by dialing 1-888-203-1112 (North America) or 1-647-436-0148
(International) using access code 5591030 until August 8, 2013.
Domtar Corporation (NYSE: UFS) (TSX: UFS) designs, manufactures, markets and
distributes a wide variety of fiber-based products including communication
papers, specialty and packaging papers and adult incontinence products. The
foundation of its business is a network of world class wood fiber converting
assets that produce papergrade, fluff and specialty pulps. The majority of its
pulp production is consumed internally to manufacture paper and consumer
products. Domtar is the largest integrated marketer of uncoated freesheet
paper in North America with recognized brands such as Cougar^®, Lynx^® Opaque
Ultra, Husky^® Opaque Offset, First Choice^® and Domtar EarthChoice^®. Domtar
is also a leading marketer and producer of a complete line of incontinence
care products marketed primarily under the Attends^® brand name as well as
baby diapers. Domtar owns and operates Ariva^®, a network of strategically
located paper and printing supplies distribution facilities. In 2012, Domtar
had sales of US$5.5 billion from some 50 countries. The Company employs
approximately 9,900 people. To learn more, visit www.domtar.com.
All statements in this news release that are not based on historical fact,
including our estimates for the second quarter 2013 results, are
"forward-looking statements." While management has based any forward-looking
statements contained herein on its current expectations, the information on
which such expectations were based may change. These forward-looking
statements rely on a number of assumptions concerning future events and are
subject to a number of risks, uncertainties, and other factors, many of which
are outside of our control that could cause actual results to materially
differ from such statements. Such risks, uncertainties, and other factors
include, but are not necessarily limited to, the finalization of the
accounting for the second quarter 2013 results and those set forth under the
captions "Forward-Looking Statements" and "Risk Factors" of the latest Form
10-K filed with the SEC as periodically updated by subsequently filed Form
10-Q's. Unless specifically required by law, we assume noobligation to update
or revise these forward-looking statements to reflect new events or
^1 Non-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.
SOURCE Domtar Corporation
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