Domtar Corp Q4'13 net earnings more than doubles q-o-q

08 Feb '14

2 min read

Domtar Corporation reported net earnings of $65 million ($2.00 per share) for the fourth quarter of 2013 compared to net earnings of $27 million ($0.82 per share) for the third quarter of 2013 and net earnings of $19 million ($0.54 per share) for the fourth quarter of 2012. Sales for the fourth quarter of 2013 were $1,359 million.

Highlights:

-Fourth quarter 2013 net earnings of $2.00 per share, earnings before items of $2.09 per share

-Announced and completed on January 2, 2014, the acquisition of Laboratorios Indas, Spain's largest manufacturer and marketer of adult incontinence products

-Completed a long-term financing with the successful issuance of 30-year senior notes

Excluding items listed below, the Company had earnings before items1 of $68 million ($2.09 per share) for the fourth quarter of 2013 compared to earnings before items1 of $41 million ($1.25 per share) for the third quarter of 2013 and earnings before items1 of $46 million ($1.31 per share) for the fourth quarter of 2012.

Fourth quarter 2013 items:

Net gain on sale of property, plant and equipment and business for $5 million ($4 million after tax); and Charge of $7 million ($7 million after tax) for impairment of property, plant and equipment.

Third quarter 2013 items:

Loss on sale of business of $19 million ($12 million after tax); and

Negative impact of purchase accounting of $2 million ($2 million after tax).

Fourth quarter 2012 items:

Closure and restructuring costs of $27 million ($18 million after tax),

Charge of $12 million ($8 million after tax) related to the impairment and write-down of property, plant and equipment and intangible assets; and Net losses on the sale of property, plant and equipment of $2 million ($1 million after tax).

Commenting on the fourth quarter results, John D. Williams, President and Chief Executive Officer, said, "Our solid results in the fourth quarter were mostly in line with our expectations in all of our businesses. Lower planned maintenance shutdowns and the continued momentum in pulp markets drove quarter over quarter earnings improvement."

FISCAL YEAR 2013 HIGHLIGHTS

For fiscal year 2013, net earnings amounted to $91 million ($2.72 per share) compared to net earnings of $172 million ($4.76 per share) for fiscal year 2012.

The Company had earnings before items1 of $158 million ($4.73 per share) for fiscal 2013 compared to earnings before items1 of $233 million ($6.45 per share) for fiscal 2012. Sales amounted to $5.4 billion for fiscal year 2013.

Click here to view full results

Domtar Corporation

More Textiles News - Canada...