Domtar Corporation Announces Important Business Update

SEATTLE (Scrap Monster): Domtar Corporation provided an update on its financial performance during the fourth quarter of 2019. The management expects operating loss during the quarter.

According to the company, the Q4 ’19 sales are likely to total $1.2 billion, whereas the EBITDA before items is likely to be between $74 million and $78 million. The operating loss is likely to range between $15 million and $19 million, after adjusting for items, including closure and restructuring costs of nearly $19 million and depreciation and amortization of nearly $74 million.

Domtar repurchased 2.1 million shares for a total cost of approximately $75 million under the stock repurchase program.

ALSO READ: Domtar Corp.'s Pulp Shipments Soared 12%

John D. Williams, President and Chief Executive Officer noted that the Q4 results fell short of the company’s expectations. The quarter saw significant rise in market-related downtime, in order to better balance its supply with customer demand, very much in line with the earlier announced inventory reduction plan. Williams added that the inventories are currently at optimal levels and that business is likely to return to a balanced level in early 2020.

The company is scheduled to release its fourth quarter and fiscal year 2019 financial results on Friday, February 7, 2020.