Domtar Q4 Profit More Than Triples, Beats View

(RTTNews) - Canadian paper producer Domtar Corp. (UFS, UFS.TO) on Friday reported a profit for the fourth quarter that more than tripled from last year, reflceting higher sales and fewer one-time charges. Adjusted earnings per share for the quarter beat analysts' expectations, while revenues matched their estimates.

John Williams, President and Chief Executive Officer of Domtar, 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."

The company's net earnings for the fourth quarter were $65 million or $2.00 per share, up from $19 million or $0.54 per share in the prior-year period.

The latest quarter's results include a net gain on sale of property, plant and equipment and business of $4 million after tax, and a charge of $7 million for impairment of property, plant and equipment.

Excluding items, adjusted earnings for the latest quarter were $68 million or $2.09 per share, compared to $46 million or $1.31 per share in the year-ago quarter. On average, 12 analysts polled by Thomson Reuters expected the company to report earnings of $1.53 per share for the quarter. Analysts' estimates typically exclude special items.

Consolidated sales for the year rose 2 percent to $1.36 billion from $1.33 billion in the prior-year period. Analysts had a consensus revenue estimate of $1.36 billion for the quarter.

Pulp and paper sales for the quarter declined 2 percent to $1.19 billion from $1.22 billion in the year-ago period, while personal care sales rose 55 percent to $172 million.

For fiscal 2013, Domtar's net earnings were $91 million or $2.72 per share, down from $172 million or $4.76 per share in the prior year. Adjusted earnings for the year were $158 million or $4.73 per share, compared to $233 million or $6.45 per share in the previous year.

Consolidated sales for the year declined 2 percent to $5.39 billion from $5.48 billion last year.

Street expected the company to earn $4.20 per share for the year on revenues of $5.39 billion.

Looking ahead to fiscal 2014, Domtar expects paper shipments to be in-line with 2013, while it expects the market demand for uncoated free sheet to decline with long-term secular trends. The company also expects its paper prices to benefit from the implementation of recently announced price increases.

UFS closed Thursday's trading at $107.54, up $1.54 or 1.45 percent on a volume of 1.14 million shares.