Cascades, Inc. Reports Robust Q1 Results and Positive Near-Term Outlook

SEATTLE (Scrap Monster): Quebec, Canada-based Cascades, Inc. has announced the results for the first quarter of 2018. The quarterly performance reported improvement over the previous year and over the prior quarter in terms of sales, shipment volume and operating income. The containerboard packaging division reported strong results during the quarter. However, higher transportation costs negatively impacted the profitability of its North American operations. The company shared positive outlook on performance during the remainder of year 2018. It must be noted that the company had announced exemplary operating results for 2017.

The Q1 2018 sales totaled $1,098 million, higher by almost 9% when compared with the Q1 2017 sales of $1,006 million. The sales stood marginally higher by 1% from $1,082 million in Q4 2017. The operating income surged higher by 261% from $31 million in first quarter of 2017 to $112 million in Q1 this year. The adjusted net earnings per common share remained unchanged at $0.13, when compared with the previous year. Also, net debt increased marginally to $1,534 million as at March 31, 2018.

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Cascade, Inc.’s strong quarterly results were mainly supported by robust performance from European boxboard subsidiary Reno de Medici. Consolidation of the Greenpac Mill, strong industry fundamentals and higher average selling prices boosted the performance of containerboard packaging division, amidst unplanned downtime at several mills. The shipments from the Tissue Papers division surged higher by nearly 7% over the previous year. Specialty Products segment underperformed, mainly on account of falling demand for OCC.

Mr. Mario Plourde , President and Chief Executive Officer stated that the company’s outlook remains positive for the near-term. The second quarter is seasonally favorable for all its business segments, he said. While continued strong performance is expected from Containerboard Packaging segment, it expects the Tissue Paper division to remain under pressure.