10 November, 23:51
Cascades Inc. reports its unaudited financial results for the three-month period ended September 30, 2017. Sales of $1,103 million increased by $82 million, or 8% compared to the same period last year, reflecting the consolidation of results from the Greenpac Mill beginning in the 2Q, improved pricing and sales mix in all four of the Corporation's business segments, and additional sales from recovery and recycling activities due to higher recycled fibre pricing. These benefits were partially offset by lower volumes in its North American operations, and the stronger Canadian dollar which resulted in a less favourable CAD/USD exchange rate, as the company said in the press release received by Lesprom Network.
3Q operating income stood at $51 million, a slight improvement from $50 million last year. This performance reflects the inclusion of Greenpac in the current quarter, price increases mainly in Containerboard, and lower Corporate activities costs related to lower stock-based compensation expense. These were offset by higher raw material costs, and higher production costs in Containerboard and Tissue, due to freight and logistics, and increased use of outside contracting.
On an adjusted basis, 3Q operating income stood at $53 million, down slightly from $55 million in the prior year period.
For the 3Q 2017, Cascades posted net earnings of $33 million, compared to net earnings of $20 million the same period of 2016. On an adjusted basis, Cascades generated net earnings of $19 million during the 3Q 2017, compared to net earnings of $30 million in the same period of 2016.
Cascades produces, converts and markets packaging and tissue products that are composed mainly of recycled fibres.