Cascades reports record sales and solid containerboard in Q2
By P&PC Staff
By P&PC Staff
August 9, 2018 – Cascades Inc. has announced its unaudited financial results for the three-month period ended June 30, 2018.
Highlights include record sales of $1,179 million, an increase of seven per cent over Q1 2018 and four per cent over Q2 2017, and, as reported:
- An operating income of $73 million, compared to $112 million in Q1 2018 and $48 million in Q2 2017
- Operating income before depreciation and amortization (OIBD) of $131 million, compared to $167 million in Q1 2018 and $104 million in Q2 2017
- Net earnings per common share of $0.28, compared to $0.65 in Q1 2018 and $2.70 in Q2 2017
“We are pleased with our consolidated second-quarter financial and operating performance,” said Mario Plourde, president and CEO of Cascades. “The containerboard packaging and European boxboard divisions benefited from solid market and pricing conditions and delivered strong results that were in line with expectations. The specialty products division also met expectations in spite of the continued pressure on results from the recovery operations due to lower raw material prices.”
He continued, “Results from our tissue segment were down, reflecting the competitive marketplace and higher virgin pulp and white recycled fibre costs. This was in line with our updated outlook of stronger sales and shipment levels during the period. Transportation costs and availability also presented challenges for our North American operations. On the strategic front, production began ramping up in May at the new containerboard converting facility in New Jersey, on schedule. Existing volumes will continue to be transferred to the site from other facilities, most notably the New York converting asset that will cease production by year-end. In late July, we announced the acquisition of the Bear Island facility in Virginia, and our intention to convert the asset into a state-of-the-art containerboard machine capable of producing lightweight recycled liner and medium. The scope and project plans are expected to be finalized in 2019, subject to board approval, with a targeted production start up in 2021.”
Read the full report here.