Lower selling prices and higher costs impact fourth quarter
results(All financial information is in U.S. dollars, and all
earnings per share results are diluted, unless otherwise
noted).
- Fourth quarter 2016 net earnings of
$0.75 per share; earnings before items1 of $0.75 per share
- Best operating cash flow quarter of
2016
- Qualification of Ashdown fluff pulp
underway with initial trials providing good results
Domtar Corporation (NYSE: UFS) (TSX: UFS) today reported net
earnings of $47 million ($0.75 per share) for the fourth
quarter of 2016 compared to net earnings of $59 million ($0.94
per share) for the third quarter of 2016 and net earnings of
$57 million ($0.91 per share) for the fourth quarter of 2015.
Sales for the fourth quarter of 2016 were $1.3 billion.
Excluding items listed below, the Company had earnings before
items1 of $47 million ($0.75 per share) for the fourth quarter
of 2016 compared to earnings before items1 of $71 million
($1.13 per share) for the third quarter of 2016 and earnings before
items1 of $70 million ($1.11 per share) for the fourth quarter
of 2015.
Fourth quarter 2016
items:
- Closure and restructuring impact of
$(1) million ($(1) million after tax); and
- Negative impact of purchase accounting
of $1 million ($1 million after tax).
Third quarter 2016
items:
- Closure and restructuring costs of
$10 million ($8 million after tax); and
- Impairment of property, plant &
equipment of $5 million ($4 million after tax).
Fourth quarter 2015
items:
- Closure and restructuring costs of
$1 million ($1 million after tax); and
- Impairment of property, plant &
equipment of $20 million ($12 million after tax).
FISCAL YEAR 2016 HIGHLIGHTS
For fiscal year 2016, net earnings amounted to $128 million
($2.04 per share) compared to net earnings of $142 million
($2.24 per share) for fiscal year 2015. The Company had earnings
before items1 of $178 million ($2.84 per share) for fiscal
year 2016 compared to earnings before items1 of $211 million
($3.33 per share) for fiscal year 2015. Sales amounted to
$5.1 billion for fiscal year 2016.
Commenting on the full-year results, John D. Williams, President
and Chief Executive Officer, said, “Our businesses generated strong
EBITDA and cash flow in a challenging macro-economic and
competitive environment. This allowed us to further execute on our
growth strategy, while returning cash to our shareholders.”
QUARTERLY REVIEW
“Our pulp business shipped record volumes of softwood in the
fourth quarter. Nevertheless, the segment was impacted by lower
prices and higher costs,” said John D. Williams, President and
Chief Executive Officer. “Personal Care began manufacturing baby
diapers using Ashdown fluff pulp with initial trials providing good
results. This production is the first step towards qualifying
Ashdown fluff pulp for the hygiene market.”
Mr. Williams added, “The fourth quarter marked our highest
Personal Care sales and EBITDA of the year, which included the
results of our recent HDIS acquisition. We are scaling up our
capabilities in the rapidly growing direct-to-consumer channel,
while expanding our partner-brand strategy to capture sales growth
and higher margins by continuing to differentiate the way we sell
our products.”
Operating income was $74 million in the
fourth quarter of 2016 compared to an operating income of
$92 million in the third quarter of 2016. Depreciation and
amortization totaled $85 million in the fourth quarter of
2016.
Operating income before items1 was
$74 million in the fourth quarter of 2016 compared to an
operating income before items1 of $107 million in the third
quarter of 2016.
(In millions of dollars)
4Q 2016 3Q
2016 Sales $ 1,274 $ 1,270 Operating income (loss) Pulp
and Paper segment 74 89 Personal Care segment 13 15 Corporate
(13 ) (12 ) Total operating income 74 92 Operating
income before items1 74 107 Depreciation and amortization 85 87
The decrease in operating income in the fourth quarter of 2016
was the result of lower average selling prices, higher raw material
costs, lower productivity and higher maintenance costs. These
factors were partially offset by an increase in pulp sales volume
and favorable exchange rates.
When compared to the third quarter of 2016, manufactured paper
shipments were down 1% and pulp shipments increased 12%. The
shipments-to-production ratio for paper was 104% in the fourth
quarter of 2016, compared to 102% in the third quarter of 2016.
Paper inventories decreased by 22,000 tons and pulp inventories
increased by 19,000 metric tons when compared to the third quarter
of 2016.
LIQUIDITY AND CAPITAL
Cash flow provided from operating activities amounted to
$155 million, and capital expenditures were $45 million,
resulting in free cash flow1 of $110 million for the fourth
quarter of 2016. Domtar’s net debt-to-total capitalization ratio1
stood at 30% at December 31, 2016 and at September 30,
2016.
OUTLOOK
In 2017, we expect our paper shipments to be in-line with market
demand, while pulp shipments should be higher due to the conversion
of a paper machine to a fluff pulp line. We anticipate some
volatility in softwood and fluff pulp markets due to the strong
U.S. dollar and new capacity additions. Costs, including freight,
labor and raw materials, are expected to marginally increase. In
Personal Care, investments in advertising and promotion in addition
to new customer wins should drive higher sales.
EARNINGS CONFERENCE CALL
The Company will hold a conference call today at 10:00 a.m. (ET)
to discuss its fourth quarter and fiscal year 2016 financial
results. Financial analysts are invited to participate in the call
by dialing 1 (800) 499-4035 (toll free - North America) or 1 (416)
204-9269 (International) at least 10 minutes before start time,
while media and other interested individuals are invited to listen
to the live webcast on the Domtar Corporation website at
www.domtar.com.
The Company will release its first quarter 2017 earnings results
on April 27, 2017, before markets open, followed by a conference
call at 10:00 a.m. (ET) to discuss results. The date is tentative
and will be confirmed approximately three weeks prior to the
official earnings release date.
About DomtarDomtar is a leading provider of a wide
variety of fiber-based products including communication, specialty
and packaging papers, market pulp and absorbent hygiene products.
With approximately 10,000 employees serving more than 50 countries
around the world, Domtar is driven by a commitment to turn
sustainable wood fiber into useful products that people rely on
every day. Domtar’s annual sales are approximately $5.1 billion,
and its common stock is traded on the New York and Toronto Stock
Exchanges. Domtar’s principal executive office is in Fort Mill,
South Carolina. To learn more, visit www.domtar.com.
Forward-Looking StatementsStatements in this release
about our plans, expectations and future performance, including the
statements by Mr. Williams and those contained under “Outlook,” are
“forward-looking statements.” Actual results may differ materially
from those suggested by these statements for a number of reasons,
including changes in customer demand and pricing, changes in
manufacturing costs, future acquisitions and divestitures,
including facility closings, and the other reasons identified under
“Risk Factors” in our Form 10-K for 2015 as filed with the SEC and
as updated by subsequently filed Form 10-Q’s. Except to the extent
required by law, we expressly disclaim any obligation to update or
revise these forward-looking statements to reflect new events or
circumstances or otherwise.
Domtar CorporationHighlights(In millions of
dollars, unless otherwise noted)
Three months
ended
Three months
ended
Twelve months
ended
Twelve months
ended
December 31, December 31,
December 31, December 31,
2016 2015
2016 2015 (Unaudited)
$ $
$ $
Selected Segment Information
Sales Pulp and Paper
1,046 1,110
4,239 4,458
Personal Care
242 221
917
869 Total for reportable segments
1,288 1,331
5,156
5,327 Intersegment sales
(14 ) (17 )
(58 ) (63 )
Consolidated sales
1,274 1,314
5,098 5,264
Depreciation and amortization and impairment
of property, plant and
equipment
Pulp and Paper
68 73
284 297 Personal Care
17 16
64 62 Total for reportable
segments
85 89
348 359 Impairment of property, plant
and equipment - Pulp and Paper
— 20
29
77
Consolidated depreciation and amortization and
impairment of property, plant and
equipment
85 109
377 436
Operating income (loss) Pulp and Paper
74 86
217 270 Personal Care
13 16
57 61 Corporate
(13 ) (8 )
(51 )
(43 )
Consolidated operating income 74 94
223 288 Interest expense, net
17 17
66 132
Earnings before income taxes
57 77
157 156 Income tax expense
10
20
29 14
Net earnings
47 57
128 142 Per common share
(in dollars) Net earnings Basic
0.75 0.91
2.04 2.24
Diluted
0.75 0.91
2.04 2.24 Weighted average number
of common
shares outstanding (millions)
Basic
62.6 62.8
62.6 63.3 Diluted
62.7
62.9
62.7 63.4 Cash flows provided from
operating activities
155 137
465 453 Additions to
property, plant and equipment
45 87
347 289
Domtar CorporationConsolidated Statements of
Earnings(In millions of dollars, unless otherwise noted)
Three months
ended
Three months
ended
Twelve months
ended
Twelve months
ended
December 31, December 31,
December 31, December 31,
2016 2015
2016 2015 (Unaudited)
$ $
$ $
Sales 1,274 1,314
5,098 5,264
Operating expenses Cost of sales,
excluding depreciation and amortization
1,003 1,007
4,035 4,147 Depreciation and amortization
85 89
348 359 Selling, general and administrative
113 100
427 394 Impairment of property, plant and equipment
—
20
29 77 Closure and restructuring costs
(1 )
1
32 4 Other operating loss (income), net
—
3
4 (5 )
1,200
1,220
4,875 4,976
Operating income
74 94
223 288 Interest expense, net
17
17
66 132
Earnings before income
taxes 57 77
157 156 Income tax expense
10 20
29 14
Net earnings 47 57
128
142
Per common share (in dollars) Net earnings Basic
0.75 0.91
2.04 2.24 Diluted
0.75 0.91
2.04 2.24 Weighted average number of common
shares outstanding (millions)
Basic
62.6 62.8
62.6 63.3 Diluted
62.7 62.9
62.7 63.4
Domtar CorporationConsolidated Balance Sheets
at(In millions of dollars)
December 31, December 31,
2016 2015
(Unaudited)
$ $
Assets Current
assets Cash and cash equivalents
125 126 Receivables,
less allowances of $7 and $6
613 627 Inventories
759
766 Prepaid expenses
40 21 Income and other taxes receivable
31 14
Total current assets
1,568 1,554
Property, plant and equipment, net
2,825 2,835
Goodwill 550 539
Intangible
assets, net 608 601
Other assets
129 125
Total assets 5,680
5,654
Liabilities and shareholders' equity Current
liabilities Bank indebtedness
12 — Trade and other
payables
656 720 Income and other taxes payable
22 27
Long-term debt due within one year
63 41
Total current liabilities 753 788
Long-term
debt 1,218 1,210
Deferred income taxes and other
675 654
Other liabilities and deferred credits
358 350
Shareholders' equity Common stock
1 1
Additional paid-in capital
1,963 1,966 Retained earnings
1,211 1,186 Accumulated other comprehensive loss
(499 ) (501 )
Total shareholders'
equity 2,676 2,652
Total liabilities
and shareholders' equity 5,680 5,654
Domtar CorporationConsolidated Statements of Cash
Flows(In millions of dollars)
For the twelve months ended
December 31, 2016
December 31, 2015 (Unaudited)
$ $
Operating
activities Net earnings
128 142
Adjustments to reconcile net earnings to cash flows from operating
activities Depreciation and amortization
348 359 Deferred
income taxes and tax uncertainties
9 (56 ) Impairment of
property, plant and equipment
29 77 Net gains on disposals
of property, plant and equipment
— (15 ) Stock-based
compensation expense
7 5 Other
(2 ) 4 Changes
in assets and liabilities, excluding effect of sale and acquisition
of
businesses
Receivables
18 (22 ) Inventories
14 (84 ) Prepaid
expenses
5 5 Trade and other payables
(51 ) —
Income and other taxes
(18 ) 38 Difference between
employer pension and other post-retirement
contributions and pension and other
post-retirement expense
(21 ) (1 ) Other assets and other liabilities
(1 ) 1 Cash flows provided from operating
activities
465 453
Investing activities
Additions to property, plant and equipment
(347 )
(289 ) Proceeds from disposals of property, plant and equipment and
sale of business
1 36 Acquisition of businesses, net of cash
acquired
(46 ) — Other
1 9 Cash
flows used for investing activities
(391 )
(244 )
Financing activities Dividend payments
(102 ) (100 ) Stock repurchase
(10 )
(50 ) Net change in bank indebtedness
12 (11 ) Change in
revolving bank credit facility
— 50 Proceeds from
receivables securitization facility
140 — Repayments of
receivables securitization facility
(70 ) — Issuance
of long-term debt
— 300 Repayments of long-term debt
(40 ) (439 ) Other
(3 ) 1
Cash flows used for financing activities
(73 )
(249 )
Net increase (decrease) in cash and cash
equivalents 1 (40 ) Impact of foreign exchange on cash
(2 ) (8 ) Cash and cash equivalents at beginning of
year
126 174
Cash and cash equivalents at
end of year 125 126
Supplemental cash
flow information Net cash payments for: Interest (including $40
million of redemption premiums in 2015)
64 133 Income taxes
paid, net
40 34
Domtar CorporationQuarterly Reconciliation of Non-GAAP
Financial Measures(In millions of dollars, unless otherwise
noted)
The following table sets forth certain non-U.S. generally
accepted accounting principles (“GAAP”) financial metrics
identified in bold as “Earnings before items”, “Earnings before
items per diluted share”, “EBITDA”, “EBITDA margin”, “EBITDA before
items”, “EBITDA margin before items”, “Free cash flow”, “Net debt”
and “Net debt-to-total capitalization”. Management believes that
the financial metrics are useful to understand our operating
performance and benchmark with peers within the industry. The
Company calculates “Earnings before items” and “EBITDA before
items” by excluding the after-tax (pre-tax) effect of specified
items. These metrics are presented as a complement to enhance the
understanding of operating results but not in substitution for GAAP
results.
2016 2015 Q1 Q2
Q3 Q4
Year Q1 Q2 Q3
Q4
Year Reconciliation of "Earnings before
items" to Net
earnings
Net earnings ($) 4 18 59 47
128 36 38
11 57
142 (+) Impairment of property, plant and equipment
($) 16 2 4 —
22 12 11 12 12
47 (+) Closure and
restructuring costs ($) 2 16 8 (1 )
25 1 1 1 1
4 (+)
Litigation settlement ($) — 2 — —
2 — — — —
— (-) Net
gains on disposals of property, plant and equipment ($) — — — — —
(1 ) (11 ) — —
(12 ) (+) Impact of purchase
accounting ($) — — — 1
1 — — — — — (+) Debt refinancing
costs ($) — — — — — — — 30 —
30 (=)
Earnings before
items ($) 22 38 71 47
178 48 39 54 70
211 (/)
Weighted avg. number of common shares outstanding (diluted)
(millions) 62.8 62.7 62.7 62.7
62.7 63.9 63.7 63.0 62.9
63.4 (=)
Earnings before items per diluted share ($)
0.35 0.61 1.13 0.75
2.84 0.75 0.61 0.86 1.11
3.33
Reconciliation of "EBITDA" and "EBITDA before
items" to Net earnings
Net earnings ($) 4 18 59 47
128 36 38 11 57
142 (+)
Income tax (benefit) expense ($) (3 ) 6 16 10
29 9 (1 ) (14
) 20
14 (+) Interest expense, net ($) 17 15 17 17
66
26 25 64 17
132 (=) Operating income ($) 18 39 92 74
223 71 62 61 94
288 (+) Depreciation and amortization
($) 89 87 87 85
348 90 91 89 89
359 (+) Impairment of
property, plant and equipment ($) 21 3 5 —
29 19 18 20 20
77 (-) Net gains on disposals of property, plant and
equipment ($) — — — — — (1 ) (14 ) — —
(15 ) (=)
EBITDA ($) 128 129 184 159
600 179 157 170 203
709 (/) Sales ($) 1,287 1,267 1,270 1,274
5,098 1,348
1,310 1,292 1,314
5,264 (=)
EBITDA margin (%) 10 % 10
% 14 % 12 %
12 % 13 % 12 % 13 % 15 %
13
% EBITDA ($) 128 129 184 159
600 179 157 170 203
709 (+) Closure and restructuring costs ($) 2 21 10 (1 )
32 1 1 1 1
4 (+) Litigation settlement ($) — 2 — —
2 — — — —
— (+) Impact of purchase accounting ($) — —
— 1
1 — — — —
—
(=)
EBITDA before items ($) 130 152 194 159
635 180
158 171 204
713 (/) Sales ($) 1,287 1,267 1,270 1,274
5,098 1,348 1,310 1,292 1,314
5,264 (=)
EBITDA
margin before items (%) 10 % 12 % 15 % 12 %
12 %
13 % 12 % 13 % 16 %
14 % Reconciliation of
"Free cash flow" to Cash flows
provided from operating
activities
Cash flows provided from operating activities ($) 97 118 95 155
465 127 122 67 137
453 (-) Additions to property,
plant and equipment ($) (100 ) (119 ) (83 ) (45 )
(347
) (70 ) (66 ) (66 ) (87 )
(289 ) (=)
Free
cash flow ($) (3 ) (1 ) 12 110
118 57 56 1 50
164
"Net debt-to-total capitalization" computation Bank
indebtedness ($) 6 1 — 12 6 1 1 — (+) Long-term debt due within one
year ($) 41 64 63 63 169 169 42 41 (+) Long-term debt ($) 1,211
1,237 1,309 1,218 1,170 1,169 1,236 1,210 (=) Debt ($) 1,258 1,302
1,372 1,293 1,345 1,339 1,279 1,251 (-) Cash and cash equivalents
($) (97 ) (111 ) (168 ) (125 ) (183 ) (207 ) (128 ) (126 ) (=)
Net debt ($) 1,161 1,191 1,204 1,168 1,162 1,132 1,151 1,125
(+) Shareholders' equity ($) 2,736 2,716 2,754 2,676 2,710 2,761
2,659 2,652 (=) Total capitalization ($) 3,897 3,907 3,958 3,844
3,872 3,893 3,810 3,777 Net debt ($) 1,161 1,191 1,204 1,168 1,162
1,132 1,151 1,125 (/) Total capitalization ($) 3,897 3,907 3,958
3,844 3,872 3,893 3,810 3,777 (=)
Net debt-to-total
capitalization (%) 30 % 30 % 30 % 30 % 30 % 29 % 30 % 30 %
"Earnings before items", "Earnings before items per diluted
share", "EBITDA", "EBITDA margin", "EBITDA before items", "EBITDA
margin before items", "Free cash flow", "Net debt" and "Net
debt-to-total capitalization" have no standardized meaning
prescribed by GAAP and are not necessarily comparable to similar
measures presented by other companies and therefore should not be
considered in isolation or as a substitute for Net earnings,
Operating income or any other earnings statement, cash flow
statement or balance sheet financial information prepared in
accordance with GAAP. It is important for readers to understand
that certain items may be presented in different lines by different
companies on their financial statements, thereby leading to
different measures for different companies.
Domtar CorporationQuarterly Reconciliation of Non-GAAP
Financial Measures – By Segment 2016(In millions of dollars,
unless otherwise noted)
The following table sets forth certain non-U.S. generally
accepted accounting principles (“GAAP”), financial metrics
identified in bold as “Operating income (loss) before items”,
“EBITDA before items” and “EBITDA margin before items” by
reportable segment. Management believes that the financial metrics
are useful to understand our operating performance and benchmark
with peers within the industry. The Company calculates the
segmented “Operating income (loss) before items” by excluding the
pre-tax effect of specified items. These metrics are presented as a
complement to enhance the understanding of operating results but
not in substitution for GAAP results.
Pulp and Paper Personal
Care (1) Corporate Total
Q1'16 Q2'16 Q3'16 Q4'16
Year
Q1'16 Q2'16 Q3'16 Q4'16
Year
Q1'16 Q2'16 Q3'16 Q4'16
Year
Q1'16 Q2'16 Q3'16 Q4'16
Year
Reconciliation of Operating income (loss)
to "Operating income (loss) before
items"
Operating income (loss) ($) 19 35 89 74
217 14 15 15 13
57 (15) (11) (12) (13)
(51) 18 39 92 74
223
(+) Impairment of property, plant and equipment ($) 21 3 5 —
29 — — — —
— — — — —
— 21 3 5 —
29 (+)
Impact of purchase accounting ($) — — — —
— — — — 1
1
— — — —
—
— — — 1
1 (+) Closure and restructuring costs ($) 2 21 10
(2)
31 — — — 1
1 — — —
—
—
2 21 10 (1)
32 (+) Litigation settlement ($) — — — —
— — — — —
— — 2 — —
2 — 2 — —
2 (=)
Operating income (loss) before items ($) 42 59 104 72
277 14 15 15 15
59 (15) (9) (12) (13)
(49) 41
65 107 74
287 Reconciliation of "Operating income
(loss)
before items" to "EBITDA before
items"
Operating income (loss) before items ($) 42 59 104 72
277 14
15 15 15
59 (15) (9) (12) (13)
(49) 41 65 107 74
287 (+) Depreciation and amortization ($) 73 72 71 68
284 16 15 16 17
64 — — — —
— 89 87 87 85
348 (=)
EBITDA before items ($) 115 131 175
140
561 30 30 31 32
123 (15) (9) (12) (13)
(49) 130 152 194 159
635 (/) Sales ($) 1,085 1,054
1,054 1,046
4,239 216 228 231 242
917 — — — —
— 1,301 1,282 1,285 1,288
5,156 (=)
EBITDA margin
before items (%) 11% 12% 17% 13%
13% 14% 13% 13% 13%
13% — — — —
— 10% 12% 15% 12%
12%
"Operating income (loss) before items", "EBITDA before items"
and "EBITDA margin before items" have no standardized meaning
prescribed by GAAP and are not necessarily comparable to similar
measures presented by other companies and therefore should not be
considered in isolation or as a substitute for Operating income
(loss) or any other earnings statement, cash flow statement or
balance sheet financial information prepared in accordance with
GAAP. It is important for readers to understand that certain items
may be presented in different lines by different companies on their
financial statements, thereby leading to different measures for
different companies.
(1) On October 1, 2016, the Company acquired 100% of the shares
of Home Delivery Incontinent Supplies Co. in the United States.
Domtar CorporationQuarterly Reconciliation of Non-GAAP
Financial Measures – By Segment 2015(In millions of dollars,
unless otherwise noted)
The following table sets forth certain non-U.S. generally
accepted accounting principles (“GAAP”), financial metrics
identified in bold as “Operating income (loss) before items”,
“EBITDA before items” and “EBITDA margin before items” by
reportable segment. Management believes that the financial metrics
are useful to understand our operating performance and benchmark
with peers within the industry. The Company calculates the
segmented “Operating income (loss) before items” by excluding the
pre-tax effect of specified items. These metrics are presented as a
complement to enhance the understanding of operating results but
not in substitution for GAAP results.
Pulp and Paper Personal
Care Corporate Total Q1'15
Q2'15 Q3'15 Q4'15
Year Q1'15
Q2'15 Q3'15 Q4'15
Year Q1'15
Q2'15 Q3'15 Q4'15
Year Q1'15
Q2'15 Q3'15 Q4'15
Year
Reconciliation of Operating income (loss)
to "Operating income (loss) before
items"
Operating income (loss) ($) 75 55 54 86
270 10 17 18 16
61 (14) (10) (11) (8)
(43) 71 62 61 94
288 (+)
Impairment of property, plant and equipment ($) 19 18 20 20
77 — — — —
— — — — —
— 19 18 20 20
77
(-) Net gains on disposals of property, plant and equipment ($) —
(14) — —
(14) — — — —
— (1) — — —
(1) (1) (14)
— —
(15) (+) Closure and restructuring costs ($) — 1 1 1
3 1 — — —
1 — — — —
— 1 1 1 1
4 (=)
Operating income (loss) before items ($) 94 60 75 107
336 11 17 18 16
62 (15) (10) (11) (8)
(44) 90
67 82 115
354 Reconciliation of "Operating income
(loss)
before items" to "EBITDA before
items"
Operating income (loss) before items ($) 94 60 75 107
336 11
17 18 16
62 (15) (10) (11) (8)
(44) 90 67 82 115
354 (+) Depreciation and amortization ($) 74 75 75 73
297 16 16 14 16
62 — — — —
— 90 91 89 89
359 (=)
EBITDA before items ($) 168 135 150 180
633 27 33 32 32
124 (15) (10) (11) (8)
(44)
180 158 171 204
713 (/) Sales ($) 1,146 1,110 1,092 1,110
4,458 218 216 214 221
869 — — — —
— 1,364
1,326 1,306 1,331
5,327 (=)
EBITDA margin before
items (%) 15% 12% 14% 16%
14% 12% 15% 15% 14%
14%
— — — —
— 13% 12% 13% 15%
13%
“Operating income (loss) before items”, “EBITDA before items”
and “EBITDA margin before items” have no standardized meaning
prescribed by GAAP and are not necessarily comparable to similar
measures presented by other companies and therefore should not be
considered in isolation or as a substitute for Operating income
(loss) or any other earnings statement, cash flow statement or
balance sheet financial information prepared in accordance with
GAAP. It is important for readers to understand that certain items
may be presented in different lines by different companies on their
financial statements, thereby leading to different measures for
different companies.
Domtar CorporationSupplemental Segmented
Information(In millions of dollars, unless otherwise noted)
2016 2015 Q1 Q2 Q3
Q4
Year Q1 Q2 Q3 Q4
Year Pulp and Paper
Segment
Sales ($) 1,085 1,054 1,054 1,046
4,239
1,146 1,110 1,092 1,110
4,458 Operating income ($) 19 35 89
74
217 75 55 54 86
270 Depreciation and
amortization
($) 73 72 71 68
284 74 75 75 73
297 Impairment of
property,
plant and equipment
($) 21 3 5 —
29 19 18 20 20
77 Paper
Paper Production ('000 ST) 785 715 726 714
2,940 808 806 794
837
3,245 Paper Shipments -
Manufactured
('000 ST) 786 752 744 739
3,021 804 783 779 797
3,163
Communication
Papers
('000 ST) 657 627 620 618
2,522 669 653 648 669
2,639
Specialty and
Packaging
('000 ST) 129 125 124 121
499 135 130 131 128
524
Paper Shipments -
Sourced from
3rd parties
('000 ST) 32 29 35 27
123 35 29 35 28
127 Paper
Shipments -
Total
('000 ST) 818 781 779 766
3,144 839 812 814 825
3,290
Pulp Pulp Shipments(a) ('000 ADMT) 369 360 369 415
1,513 350 345 333 386
1,414 Hardwood Kraft
Pulp
(%) 6 % 4 % 5 % 8 %
6 % 9 % 8 % 8 % 8 %
8
% Softwood Kraft
Pulp
(%) 69 % 66 % 67 % 67 %
67 % 65 % 65 % 65 % 69 %
66 % Fluff Pulp (%) 25 % 30 % 28 % 25 %
27
% 26 % 27 % 27 % 23 %
26 % Personal
Care
Segment
Sales ($) 216 228 231 242
917 218 216 214 221
869
Operating income ($) 14 15 15 13
57 10 17 18 16
61
Depreciation and
amortization
($) 16 15 16 17
64 16 16 14 16
62 Average
Exchange
Rates
$US / $CAN 1.375 1.289 1.305 1.333
1.325 1.241 1.229 1.309
1.335
1.279 $CAN / $US 0.727 0.776 0.766 0.750
0.755
0.806 0.813 0.765 0.749
0.782 € / $US 1.103 1.130 1.116
1.078
1.107 1.126 1.106 1.112 1.095
1.110
(a) Figures are gross of market pulp purchased from other
producers on the open market for some of our paper making
operations. Pulp Shipments represent the amount of pulp produced in
excess of our internal requirement.
Note: the term "ST" refers to a short ton and the term "ADMT"
refers to an air dry metric ton.
1 Non-GAAP financial measure. Refer to the Reconciliation of
Non-GAAP Financial Measures in the appendix.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170209005609/en/
Domtar CorporationINVESTOR RELATIONSNicholas
Estrela, 514-848-5555 x 85979DirectorInvestor RelationsorMEDIA
RELATIONSDavid Struhs, 803-802-8031Vice-PresidentCorporate
Services and Sustainability
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