A third quarter profit of $3 million has Cascades feeling positive, but practical. The company earned $27 million i…
A third quarter profit of $3 million has Cascades feeling positive, but practical. The company earned $27 million in the third quarter of 2004.
“Recent results are quite encouraging as Cascades has managed to be cash-flow positive despite very challenging business conditions,” said CEO Alain Lemaire. However, the company has said it is not immune to the issues that have ravaged the operations of its competitors, such as high energy costs, a tenacious Canadian dollar and increased foreign competition.
According to Yahoo! News, the company confirmed some of its underperforming assets will likely go to the chopping block in the near future. “We don’t want to put a lot of capital to save all of these facilities,” the news service reported Lemaire as saying. “Maybe some will need capital to save them, but it’s not our intention to put $50 million in different places to postpone the closure. You will see in 2006 that maybe some assets will disappear from our portfolio or some others will be closed or sold.”
The announcement of potential closures comes on the heels of measures Cascades took to downsize operations at its Thunder Bay coated fine paper mill and Norampac’s Red Rock kraft liner mill.
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