Cascades' Operating Income Witnessed Drastic Decline

SEATTLE (Scrap Monster): Cascades, Inc. announced unaudited financial results for the three-month period ended March 31, 2021.

The company reported net operating income of $52 million, down significantly by 54% when compared with $113 million in the prior quarter and down by 40% from $87 million in the year-ago quarter. It reported OBID of $128 million during the first quarter of 2021. This compares with OBID of $183 million in Q4 2020 and $157 million in Q1 2020. The net earnings per share stood at $0.22.

Cascades reported net debt of $1,654 million as at March 31, 2021, compared with $1,679 million as at the end of the previous year.

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Commenting on the results, Mario Plourde, President and CEO said that the sequential decline in its results was largely driven by contraction in retail tissue demand and continued lower volumes in Away-from-Home. On the contrary, the European Boxboard segment generated strong sequential sales growth during the quarter. The company is extremely pleased with the progress it has made in strategic initiatives and investments, he added.

The company maintained a cautiously optimistic view for its near-term performance, especially in light of the continued uncertainty regarding the COVID-19 pandemic. Cascades Inc. reiterated its focus on advancing the Bear Island containerboard project and finalizing investments in tissue converting operations.