Nov 11, 2013. /Lesprom Network/. Cascades Inc. announced its unaudited financial results for the three-month period ended September 30, 2013. In comparison with the 3Q 2012, sales increased by 10% to $995 million as a result of higher volumes, favorable exchange rates and higher average selling prices, as the company said in the press release received by Lesprom Network. 

Operating income, excluding specific items, increased from $33 million during in 3Q 2012 to $50 million for the 3Q 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.

When including specific items, operating income amounted to $37 million in comparison to $36 million for the same period of last year.

Net earnings excluding specific items amounted to $7 million in the 3Q 2013 compared to net earnings of $4 million for the same period in 2012. Including specific items, net earnings amounted to $11 million compared to net earnings of $2 million for the same quarter in 2012.

Mario Plourde, President and CEO, had the following comments on the 3Q results: "We are pleased with our 3Q results that represent our best EBITDA performance since 2010. Our two largest sectors, Containerboard and Tissue Papers, performed better, both sequentially and year-over-year. Both sectors benefited from improved productivity. The pricing environment in the Containerboard sector and sustained demand in the Tissue Papers sector have also helped to counterbalance higher raw material costs. In Europe, our boxboard activities also slightly improved their results compared to last year and the sequential decrease in volume is usual for this quarter. The Specialty Products Group continues to improve its financial performance. Our EBITDA was negatively impacted by approximately $4 million during the 3Q following flooding incidents resulting in additional maintenance and repair expenses and unplanned downtime for a shortfall of 5,800 tons at our existing containerboard mill in Niagara Falls and 4,000 tons at our fine paper mill in St-Jérôme.”

In commenting on the outlook, Mr. Plourde added: "The 3Q results confirm our view that the second half of 2013 will be better in terms of profitability. For the next quarter, we also expect to perform better than last year. Inherent seasonality is always associated with the month of December. The volatility of recycled fibre costs should remain manageable and business indicators still seem favorable.”

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