Cascades Inc. 1Q 2016 sales increased by 10% to$1,003 millioncompared to the same period last year, reflecting higher shipments in all of its groups, except inEurope, and higher average selling prices, combined with the positive financial impact of the lower Canadian dollar.
Operating income, excluding specific items, increased from$28 millionin the 1Q 2015 to$73 millionin the 1Q 2016. This improvement is
attributable to the above-mentioned factors, combined with lower raw materialsand
energy costs. Partially offsetting these benefits were higher production and
maintenance costs, in addition to some production downtimes that were taken
during the quarter.
Mr.Mario Plourde, President and CEO, commented on the 1Q results: "We are pleased with our 1Q financial results. Despite seasonality, our operations delivered an improvement on a consolidated basis, both on a sequential and a year-over-year basis.
“The 25% increase in OIBD compared to the 1Q of last year was largely driven by the strong performance of our Tissue Papers Group, which more than doubled its OIBD due to a combination of higher volume, lower fibre and energy costs and favorable average selling prices. In addition, our Containerboard and Specialty Products Groups successfully increased their OIBD by 6% and 40%, respectively, as the results of both groups benefited from higher volumes and lower production costs.”
Cascades produces, converts and markets packaging and tissue products that are composed mainly of recycled fibres.
