KINGSEY FALLS, QC — Cascades Inc. reported that net earnings are up this quarter compared to a loss for the same p…
KINGSEY FALLS, QC — Cascades Inc. reported that net earnings are up this quarter compared to a loss for the same period last year. Sales from continuing operations rose to $901 from $831 for the same period. The operating income from continuing operations is also up as well as net earnings which totalled $4 million.
Highlights of the second quarter report point out the improved results compared to the first quarter of 2005, due to several factors:
— Higher shipments, despite the negative impact of higher prices for energy, freight and chemical products prices;
— Cascades successfully restarted the FjordCell virgin pulp mill at the end of June, following the signature of a new labour contract in May 2005;
— Cascades recently recognized by the Government of Canada through the Canadian Industry Program for Energy Conservation (CIPEC) for its employee energy efficiency awareness and training program; and
— Norampac announces the closing of its Buffalo plant and the transfer of its activities to the Lancaster plant. This decision follows a similar one in regards to the Montreal plant, scheduled to take place in early 2006.
Commenting on the quarterly results, Alain Lemaire, president and CEO stated: “Despite rising costs and a very strong Canadian dollar, we were able over the course of the last twelve months to improve our results for every quarter when compared to corresponding periods of the previous year. This improvement in profitability is the consequence not only of the Dopaco acquisition, which is in line with our focus on converting, but also, a result of strategic choices we made in regards to the packaging and tissue sectors. We would also like to underline the positive contribution of employees to our efforts to improve profitability to counter the significant increases in cost. Notwithstanding this improvement in our results, we will continue to closely monitor the performance of our operating units and, in particular, we will take appropriate corrective measures for those whose performance falls below our expectations.”
Information from Cascades, Inc.
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