Lower pulp and paper prices and market related downtime in paper impacted the bottom line for Domtar in the fourth quarter of the fiscal year.
The company is reporting a net loss of $34-million compared to net earnings of $30-million for the third quarter of 2019 and net earnings of $87-million for the fourth quarter of 2018.
Sales for the fourth quarter of 2019 were $1.2-billion.
President and Chief Executive Officer John Williams says results in the paper business fell short of expectations and shipments remained weak due to seasonally slower demand and some customer destocking.
Domtar has also released its final results for the 2019 fiscal year.
The company posted net earnings of $84-million compared to $283-million for 2018.
Sales amounted to $5.2-billion last year.
John Williams says “our teams were agile in adjusting to market changes and executed well on things under our control in a challenging market environment.”
Looking ahead in 2020, Williams says their paper volumes are expected to trend with market demand while pulp volumes should increase
He notes freight, labour and raw material costs are expected to marginally increase.
