Domtar (UFS) Misses Q1 EPS by 28c, Revenues Beat

Domtar (NYSE: UFS) reported Q1 EPS of $0.09, $0.28 worse than the analyst estimate of $0.37. Revenue for the quarter came in at $944 million versus the consensus estimate of $943.22 billion.

• First quarter 2021 net loss from continuing operations of $0.13 per share; earnings from continuing operations before items1 of $0.09 per share
• $29 million financial impact from weather-related outage at Ashdown, AR market pulp mill
• Repurchases of 5.1 million shares

“While COVID-19 continued to remain the dominant challenge in the first quarter, severe winter weather affected our production and our supply chains across North America, notably at our Ashdown, AR market pulp mill. Nevertheless, we got off to a reasonably good start to the year and we expect strong second half results driven by price momentum and strong volume in paper and pulp,” said John D. Williams, President and Chief Executive Officer. “The Kingsport conversion is progressing well. The project is on schedule, and the crews on site are currently completing demolition and preparing the site for the new buildings and warehouse. We are also making good progress with our commercial strategy and the customer response continues to be extremely positive.”

Mr. Williams added, “During the quarter, we successfully closed the sale of the Personal Care business. The sale is part of our ongoing effort to strategically optimize our portfolio and it allowed us to strengthen our balance sheet, enhance liquidity and repurchase shares.”

For earnings history and earnings-related data on Domtar (UFS) click here.

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