Domtar Corporation Declared Net Loss in Q4 2020

SEATTLE (Scrap Monster): Domtar Corporation reported net loss of $59 million for the fourth quarter of 2020 compared to a net loss of $92 million for the third quarter of 2020. The company had reported net loss of $34 million in Q4 2019. The sales totalled $0.9 billion in fourth quarter last year. During the fiscal year 2020, the net loss amounted to $127 million. This compares with net earnings of $84 million in fiscal 2019.

Domtar’s paper shipments were in line with the prior quarter, while the pricing was in line with the year-to-date average. The cost reduction program contributed significantly to the company’s improved cost performance in Pulp segment. The robust sales of adult incontinence products in North America and improved performance in Europe resulted in improved Q4 performance in Personal Care segment.

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Domtar's Paper Shipment Surged 20% in Q3 2020

The manufactured paper shipments recorded marginal decline by 1%, whereas the pulp shipments were up by 14%. Quarter-on-quarter, the paper inventories were up by 10,000 tons and pulp inventories were down by 3,000 metric tons.

The company foresees gradual improvement to near-term pulp markets. It anticipates higher raw material and freight costs. In 2021, the paper demand is likely to remain uncertain and will be more or less linked to Covid-19 recovery, it said.

The company is due to release its first quarter 2021 earnings results on May 6^th.