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    Breaking News

    Domtar’s Personal Care Sales Decline

    President and CEO announces changes for the segment, including the permanent closure of its Waco, TX, facility

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    11.01.18
    Domtar Corporation reported net earnings of $99 million for the third quarter of 2018 compared to net earnings of $43 million for the second quarter of 2018 and net earnings of $70 million for the third quarter of 2017. Sales for the third quarter of 2018 were $1.4 billion.

    Sales in the Personal Care segment were $237 million in the third quarter of 2018 compared to $251 million in the third quarter of 2017.

    “Our strong performance was driven by accelerating price realizations and margin expansion, particularly, within our Pulp and Paper businesses. Our operations also ran exceptionally well, despite some weather-related outages, with productivity gains across the mill system,” says John D. Williams, president and chief executive officer. “We have strong momentum to close the year on a high note, and the confidence that our Pulp and Paper businesses will enter 2019 in the best position in recent years.”

    Commenting on Personal Care, Williams adds, “Escalating raw material costs continue to compress our margins in adult incontinence and baby diapers. As a result, we are accelerating the pace of actions that will improve margins and EBITDA, with a plan that is expected to generate annual benefits of approximately $25 to 30 million, with full effect by the end of 2020. This will include headcount reductions, the permanent closure of our Waco, TX, facility, and commercial and operational initiatives. The sum of these actions will reduce our cost base and strengthen our long-term competitive position.”
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