(All financial information is in U.S. dollars, and all earnings per share results are diluted, unless otherwise noted).
- Second quarter 2020 net earnings of $0.34 per share; earnings before items1 of $0.36 per share
- Announces significant cost savings program with expected annual savings of $200 million
- Execution of asset repurposing plan with conversion of Kingsport, TN and Ashdown, AR
- Commences review of strategic alternatives for Personal Care Division
FORT MILL, S.C.–Aug. 7, 2020– Domtar Corporation (NYSE: UFS) (TSX: UFS) today reported net earnings of $19 million ($0.34 per share) for the second quarter of 2020 compared to net earnings of $5 million ($0.09 per share) for the first quarter of 2020 and net earnings of $18 million ($0.28 per share) for the second quarter of 2019. Sales for the second quarter of 2020 were $1.0 billion.
Excluding items listed below, the Company had earnings before items1 of $20 million ($0.36 per share) for the second quarter of 2020 compared to earnings before items1 of $5 million ($0.09 per share) for the first quarter of 2020 and earnings before items1 of $36 million ($0.57 per share) for the second quarter of 2019.
“We have been proactive in reducing risk and safeguarding our ability to weather the current crisis. We are taking the appropriate steps to optimize our operations and to remain an agile, reliable partner to our customers,” said John D. Williams, President and Chief Executive Officer. “Despite the significant challenges we faced in Pulp and Paper markets, we have been able to manage costs while initiating cash and cost conservation initiatives across the network.”
Mr. Williams added, “In Personal Care, second quarter revenues were lower following a record first quarter, which was driven partly by consumer pantry loading. While revenues were lower than prior quarter, good cost control and improved operational efficiencies supported a solid EBITDA performance. The second quarter ended with an EBITDA margin of 14.4%, which was a 160 basis point improvement when compared to the first quarter and the highest divisional margin since the fourth quarter of 2015.”