Domtar expects operating loss in quarter; shares slide
TORONTO, July 12 (Reuters) - Domtar Corp warned on Friday it expects to report a second-quarter operating loss due to restructuring costs, maintenance shutdowns, lower paper and pulp shipments and higher costs for freight.
Its shares dropped about 4.6 percent in early trading.
The Montreal-based company expects to report an operating loss of between $30 million and $35 million on sales of $1.31 billion in the quarter.
Analysts, on average, expected revenue of $1.52 billion, according to Thomson Reuters I/B/E/S.
"We had sub optimal pulp productivity and unusually high costs due to significant planned maintenance and delayed restarts in our pulp mills." Chief Executive John Williams said in a statement.
Williams said he remained confident the company will return to more normal productivity levels across its business by the end of the third quarter.
Domtar fell $3.36 to $69.95 on the New York Stock Exchange, while its Toronto-listed shares were down C$3.61 to C$72.64. (Reporting by Euan Rocha; Editing by Jeffrey Benkoe)
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