Cascades, Inc. Reports 6% Upsurge in Income During Q3 2017

SEATTLE (Scrap Monster): Cascades, Inc. has published the unaudited financial results for the quarterly period ending September 30, 2017. The results indicate that the sales and operating income surged higher during the third quarter of the year. The company has been able to deliver improvements despite challenging environment and difficult market conditions. The containerboard segment reported better performance, whereas the Tissue segment delivered weak performance during the quarter.

According to company press release, sales totaled $1,103 million, marginally lower by around 2% when compared with the sales of $1,130 million during the prior quarter. However, the Q3 sales jumped higher significantly by nearly 8% upon comparison with the sales of $1021 million in Q3 2016. The Q3 operating income stood at $51 million, slightly higher over the prior quarter and higher by almost 6% over the same quarter a year before. The operating income had totaled $48 million in Q2 2017 and $50 million in Q3 2016.

Mario Plourde, President and Chief Executive Officer noted that the company has delivered year-on-year improvement in operating income despite challenges created by disruptions on account of devastating hurricanes and increasingly difficult market conditions in the tissue sector. The strategic measures to maximize profitability through improved logistics facilities and modernized manufacturing facilities have made incremental progress during Q3, Plourde stated.

The sales and operating income from Containerboard segment increased during the quarter, primarily aided by consolidation of Greenpac results and higher selling prices. However, the benefits were partially offset by higher raw material prices. The European Boxboard segment delivered improved performance during the quarter. On the other hand, Tissue segment results weakened, mainly due to higher raw material prices and higher transportation costs. The drop in production from Oregon converting plant and supply disruptions following hurricanes also led to the poor performance by the Tissue segment.

Going forward, Cascades, Inc. expects challenging market condition in both primary market segments- Packaging and Tissue. The strong demand from North American industry is likely to drive Containerboard division performance. The company foresees higher OCC prices as the main headwind to this sector. Also, near-term results from Tissue segment are most likely to remain under pressure, due to higher prices of raw materials including virgin pulp.