Domtar warns of expected operating loss ahead of quarterly results


Domtar Corp. has warned of an expected operating loss for the fourth quarter and sales that are below analyst expectations.

The wood products company says in a business update that it expects its operating loss to be between US$15 million and US$19 million, due in part to US$19 million in closure and restructuring costs and US$74 million in depreciation and amortization.

The company, partially based in Montreal, says it expects revenue of US$1.2 billion.

Analysts had expected revenue of US$1.27 billion according to financial markets data firm Refinitiv.

The company's shares were down about five per cent in mid-morning trading on the Toronto Stock Exchange.

Domtar is slated to release full fourth-quarter results on Feb. 7.

This report by The Canadian Press was first published Jan. 24, 2020.