EBITDA will be between $130 and $135 million primarily due to a combination of costs related to maintenance shutdowns, lower pulp productivity, lower paper and pulp shipments and higher costs for freight. During the 2Q 2013, paper and pulp shipments stood at 801,000 tons and 344,000 metric tons, respectively.
Estimated operating loss in the 2Q 2013 includes a litigation settlement charge of $49 million, closure and restructuring costs of $18 million, a charge of $5 million related to the impairment and write-down of property, plant and equipment, and depreciation and amortization of $93 million. Adjusting estimated operating loss for these four amounts yields EBITDA.
"We had sub optimal pulp productivity and unusually high costs due to significant planned maintenance and delayed restarts in our pulp mills." said John D. Williams, President and CEO. "However, a closer look at our operations demonstrates that by quarter end we made very good progress on addressing production issues in the Pulp and Paper business. We remain confident that we will return to more normalized productivity levels across the business by the end of the 3Q."
Domtar will release its 2Q 2013 financial results before markets open on Thursday, July 25, 2013.
Domtar Corporation designs, manufactures, markets and distributes a wide variety of fiber-based products including communication papers, specialty and packaging papers and adult incontinence products. The foundation of its business is a network of world class wood fiber converting assets that produce papergrade, fluff and specialty pulps.