Aug 08, 2013. /Lesprom Network/. Cascades Inc. announces its unaudited financial results for the three-month period ended June 30, 2013. In comparison with the same period last year, 2Q sales increased by 4% to $982 million as a result of higher volumes in the U.S. and favorable exchange rates which more than offset lower average selling prices, as the company said in the press release received by Lesprom Network.

Operating income, excluding specific items, increased from $37 million during 2Q 2012 to $39 million for the 2Q 2013. In addition to the above-mentioned factors, lower energy costs and the impact of plant closures positively contributed to results and helped to offset higher production and administrative expenses.

The net earnings excluding specific items amounted to $8 million ($0.09 per share) in the 2Q 2013 compared to net earnings of $5 million ($0.05 per share) for the same period in 2012. Including specific items, the net earnings amounted to $2 million ($0.03 per share) compared to net earnings of $5 million ($0.05 per share) for the same quarter in 2012.

Mario Plourde, President and CEO, had the following comments on the second quarter results: "As anticipated, our performance was better than what we achieved during the 1Q and represents a significant sequential rebound as all our North American segments delivered better results. In addition to the positive impact of higher selling prices, the Containerboard sector continued to increase its manufacturing utilization rate and sales volumes. However, the demand for converted products in Canada remained weak during the quarter. The Tissue Papers sector also increased its contribution and continued to achieve successful inroads, particularly in the U.S. The Specialty Products Group significantly increased its EBITDA contribution compared to the previous quarter. Only the Boxboard Europe sector showed slightly lower results due to higher raw material costs. The weakening of the Canadian dollar positively contributed to our results in general but also resulted in higher financial leverage. As for the recycled fibre market, it remained relatively stable despite the Greenpac start-up as we successfully executed our sourcing strategy."

The Board of Directors of Cascades declared a quarterly dividend of $0.04 per share to be paid September 12, 2013 to shareholders of record at the close of business on August 30, 2013.

Cascades produces, converts and markets packaging and tissue products that are composed mainly of recycled fibres.