Domtar Corporation (UFS, UFS.TO), a manufacturer of uncoated freesheet paper, reported a profit for the fourth quarter compared to a loss last year, reflecting substantially lower impairments.
For the quarter, net income was $124 million or $2.86 per share compared to a loss of $676 million or $15.72 per share last year.
Excluding special items, net earnings were $60 million or $1.39 per share compared to a loss of $20 million or $0.46 per share last year.
On average, 14 analysts polled by Thomson Reuters expected the company to report earnings of $0.14 per share. Analysts' estimates typically exclude special items.
Among special items for the fourth quarter, there was a $113 million credit on alternative fuel tax. Prior-year quarter results included, among others, a $270 million charge related to impairment of PP&E and intangible assets and a charge of $321 million related to the impairment of goodwill.
Consolidated sales for the quarter was $1.40 billion, lower than $1.47 billion last year. Six analysts were looking for revenues of $1.41 billion for the company.
Segment-wise, Paper segment sales were $1.19 billion compared to $1.24 billion last year, of which intersegment sales was $53 million compared to $56 million last year. Sales from Paper Merchants segment were $212 million compared to $228 million last year, of which intersegment sales was $6 million year-over-year. Wood segment had sales of $63 million compared to $59 million last year.
For the full year, the Canada-based company's net income was $310 million or $7.18 per share compared to a loss of $573 million or $13.33 per share last year. Excluding items, net income dropped to $46 million or $1.06 per share from $88 million or $2.05 per share last year. Sales dropped to $5.47 billion from $6.39 million last year.
Analysts expected the company to report full-year earnings of $0.64 per share on revenues of $5.47 billion.
Going forward, the company expects that the increased economic activity will partially offset the secular decline in paper demand in 2010 and that pulp demand will remain strong in the short-term.
UFS is currently trading at $49.70 per share, down $3.65 or 6.84% on the NYSE.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.