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Domtar reports best quarterly performance since 2011

Feb '19
Courtesy: Domtar
Courtesy: Domtar
Domtar Corporation, a provider of fibre-based products like specialty and packaging papers, absorbent hygiene products, has reported net earnings of $87 million for Q4 2018 compared to net loss of $386 million for Q4 2017. Sales for Q4 2018 were $1.4 billion. For FY2018, net earnings amounted to $283 million compared to net loss of $258 million for FY2017.

When compared to Q3 2018, manufactured paper shipments were down 1 per cent and pulp shipments increased 1 per cent. The shipments-to-production ratio for paper was 95 per cent in Q4 2018, compared to 98 per cent in Q3 2018. Paper inventories increased by 34,000 tons, and pulp inventories decreased by 7,000 metric tons when compared to Q3 2018, said a media statement by Domtar.

“We had a strong finish to a great year where we significantly improved EBITDA and cash flow. Our solid performance enabled us to return cash to shareholders, manage our balance sheet to preserve financial flexibility and better position Domtar for sustainable, long-term growth,” said John D Williams, president and chief executive officer.

“The fourth quarter was one of our best in several years. Our results reflect a strong performance in pulp and paper as we benefited from solid business fundamentals, accelerating price realisations and improved productivity. I’m especially pleased with our cost performance in the quarter despite fibre availability issues at several of our facilities.”

“In 2019, our paper shipments will increase as we respond to increased demand from our customers following the announced capacity closures while paper prices will continue to improve in the wake of the recently announced price increases across the majority of our paper grades. Softwood and fluff pulp markets will remain balanced through the year due to continued steady demand growth and limited announced new capacity. We anticipate costs, including freight, labour and raw materials, to marginally increase. Personal care is expected to benefit from our margin improvement plan and new customer wins, partially offset by further raw material cost inflation,” added Williams. (PC)

Fibre2Fashion News Desk – India

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