Domtar Corporation reported a net loss of $92 million ($1.67 per share) for the 3Q 2020 compared to net earnings of $19 million ($0.34 per share) for the 2Q 2020 and net earnings of $20 million ($0.32 per share) for the 3Q 2019. Sales for the 3Q 2020 were $1.1 billion.
Operating loss was $136 million in the 3Q 2020 compared to operating income of $14 million in the 2Q 2020. Depreciation and amortization totaled $71 million in the 3Q 2020.
The net operating loss in the 3Q 2020 was the result of the long-lived assets impairment and closure and restructuring charges related to the cost savings program, lower wage subsidies, higher maintenance costs, higher selling, general and administrative expenses and higher freight costs. These factors were partially offset by favorable productivity, higher volume in paper, lower raw material costs, higher average selling prices for paper and favorable exchange rates.
Domtar is a leading provider of a wide variety of fiber-based products including communication, specialty and packaging papers, market pulp and absorbent hygiene products.
