Domtar Corporation reported net earnings of $19 million for the second quarter of 2020 compared to net earnings of $5 million for the first quarter of 2020 and net earnings of $18 million for the second quarter of 2019. Sales for the second quarter of 2020 were $1 billion compared to $1.28 billion in the first quarter of 2020.

“We have been proactive in reducing risk and safeguarding our ability to weather the current crisis. We are taking the appropriate steps to optimize our operations and to remain an agile, reliable partner to our customers,” says John D. Williams, president and CEO. “Despite the significant challenges we faced in Pulp and Paper markets, we have been able to manage costs while initiating cash and cost conservation initiatives across the network.”

Williams adds, “In Personal Care, second quarter revenues were lower following a record first quarter, which was driven partly by consumer pantry loading. While revenues were lower than prior quarter, good cost control and improved operational efficiencies supported a solid EBITDA performance.”

The company has commenced a strategic review process to explore a range of value-creating alternatives for its Personal Care division, which may include a sale of the business. The strategic review process will be conducted with the assistance of Domtar’s independent financial and legal advisors and will consider a full range of potential alternatives with respect to the company’s Personal Care division.

“Over the past year, we have significantly improved the operating structure and cost profile of our Personal Care division due in large part to the hard work and perseverance of our teams. In addition, the scale-up of new customer and sales pipeline gives us confidence in the long-term prospects for the business,” Williams says. “With this positive momentum, we believe now is the right time to initiate a strategic review.”

The company has not set a deadline for the conclusion of its review of strategic alternatives, and does not intend to comment further unless and until the Board of Directors has approved a specific course of action or the company has otherwise determined that further disclosure is appropriate or necessary.