Fourth Quarter 2017 Relative to Third Quarter 2017: Net sales of $43.5 million in the fourth quarter decreased $1.7 million, or 3.7%, from the third quarter driven by seasonality factors. Converted product sales declined $1.5 million; a decline of $1.9 million due to volume, offset by higher average-selling prices having a positive impact of $0.4 million. Parent roll sales decreased $0.2 million, as the effect of lower sales volume outpaced an increase in the average selling price compared to third quarter 2017. Average selling prices were, to a degree, positively impacted in the fourth quarter by the inclusion of Orchids' new ultra-premium products manufactured at Barnwell. Cost of goods sold, net of depreciation, in the fourth quarter declined by $2.5 million to 84.6% of net sales, down from 87.0% in the third quarter, representing our second consecutive decline as a percentage of sales. Total cost of sales increased to 94.2% of revenue in the fourth quarter, up from 93.9% in the third quarter. Total depreciation increased to 9.6% of net sales in the fourth quarter from 6.9% of net sales in the third quarter as a result of the addition of the Barnwell facility. Click Read More below for additional information.
Domtar Corporation (NYSE: UFS) (TSX: UFS) today announced it will expand its Jesup, Georgia based Engineered Absorbent Materials (EAM) facility. The project will play an integral role in helping the company grow its position as a leading global absorbent materials and technology business offering fluff pulp and airlaid nonwoven materials.
“This expansion is a strategic step toward strengthening our value proposition as an essential partner to absorbent hygiene customers around the world,” Lewis Fix, Domtar vice president, commercial pulp and airlaid, said.
Domtar’s EAM facility has been developing and manufacturing innovative, high-quality absorbent core solutions since 1998. This expansion project will add a large scale Dan-Web airlaid production line to the facility. The machine will be fully operational in 2022, enhancing Domtar’s ability to supply both domestic and global customers with unique absorbent materials solutions.