May 16, 2011. /Lesprom Network/. Cascades Inc. announced its financial results for the three-month period ended March 31, 2011. Operating income before depreciation and amortization (EBITDA) excluding specific items of $37 million compared to $59 million in the 1Q 2010. Including the discontinued operations and share of results of associates and joint ventures, EBITDA would have been $57 million in 1Q 2011. Commenting on the 1Q results, Mr. Alain Lemaire, President and CEO stated: "Our 1Q results, while expected given the rising cost of waste paper and the appreciation of the Canadian dollar, are not acceptable. As we have demonstrated in recent years, we can and will adjust quickly. Recently, we have taken significant steps to improve our financial position through the disposition of non core or underperforming assets and cost cutting programs throughout the Company. These initiatives will be stepped up as we continue in our efforts to equip Cascades to meet these challenges. In comparison with the same period last year, sales rose by 2% to $774 million as of result of higher selling prices partly offset by the 6% appreciation of the Canadian dollar and the impact of the divestiture of one our containerboard mills. The operating income, excluding specific items, amounted to $1 million compared to $19 million in 1Q 2010. Improved selling prices were unfortunately offset by the rise of all main variable costs, namely recycled fibre, pulp, energy, chemical products and freight, and again, the appreciation of the Canadian dollar. On a segmented basis, although all groups benefited from better prices and healthy operating rates, each sector posted weaker profitability due the rapid and sizeable run-up in variable costs. When including specific items, the operating loss amounted to $6 million in comparison to an operating income of $19 million in the same period of last year. Cascades produces, converts and markets packaging and tissue products that are composed mainly of recycled fibres.