Page 4 > Q1 2014 > Resources > Domtar
2013 ENDS WITH SOLID FOURTH QUARTER IN PULP AND PAPER SEGMENT
Q4 EARNINGS BEFORE ITEMS
omtar reported net earnings of $65 million ($2.00 per share) for the fourth quarter of 2013 compared to $19 million ($0.54 per share) for the fourth quarter of 2012. Sales for the fourth quarter of 2013 were $1,359 million compared to $1,375 million in the same 2012 period. Excluding non-recurring and other items, the Company had earnings of $68 million ($2.09 per share) for the fourth quarter of 2013 compared to $46 million ($1.31 per share) for the fourth quarter of 2012. ‘‘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,’’ commented John D. Williams, President and Chief Executive Officer.
2013 RESULTS For fiscal year 2013, net earnings were $91 million ($2.72 per share, compared to $172 million ($4.76 per share) for fiscal year 2012. The Company had earnings before items of $158 million ($4.73 per share) for fiscal 2013, compared to $233 million ($6.45 per share) for fiscal 2012. Sales were $5.4 billion for fiscal year 2013, compared to $5.5 billion for fiscal year 2012.
HIGHER Q4 PULP AND PAPER SHIPMENTS
$169 MILLION FREE CASH FLOW FOR 2013
‘‘In 2013, we continued to transform Domtar’s earnings profile through further acquisitions in Personal Care, strategic investments in the pulp and paper business and the disposal of non-core assets,’’ noted Mr. Williams.
of common stock at an average price of $78.48 per share since the implementation of its stock repurchase program in May 2010. At the end of the fourth quarter of 2013, Domtar had $121 million remaining under this program.
‘‘The recent acquisition of Indas represents a significant step in building out our Personal Care business, and will further help us achieve our goal of $300-$500 million of EBITDA from growing businesses by 2017. We have made meaningful progress towards this goal and the businesses we have acquired so far bring us closer to the lower end of our target. The continued execution of our strategy will drive earnings and cash flow growth in 2014 and beyond.’’
LIQUIDITY AND CAPITAL In 2013, cash flow provided from operating activities amounted to $411 million and capital expenditures were $242 million, resulting in free cash flow of $169 million for fiscal 2013. Domtar’s net debt-to-total capitalization ratio stood at 24% at December 31, 2013 compared to 16% at December 31, 2012. Domtar returned a total of $250 million to shareholders through a combination of dividends and share buybacks in fiscal 2013. Domtar repurchased a total of 11,170,506 shares
In 2014, we expect our paper shipments to be in line with 2013, while we expect the market demand for uncoated free sheet to decline with long-term secular trends. Our paper prices will benefit from the implementation of recently announced price increases. We expect softwood pulp markets to maintain positive momentum but new scheduled industry hardwood pulp capacity makes the latter part of the year more uncertain. The Personal Care segment will continue to see earnings growth with the recent acquisition of Indas and with the addition of new production lines towards the end of the year. <
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