SEATTLE (Scrap Monster): Cascades, Inc. reported results for the first quarter of 2022. The lower results during the quarter were mainly due to significant inflationary pressures on costs. Going forward, the company expects selling price initiatives to contribute positively to the results during the remainder of the year.
During the three-month period ended 31st March, 2022, the company reported sales of $1,038 million, compared to $942 million a year before. The operating loss of $4 million compares with operating profit of $44 million in the prior year quarter. The operating income before depreciation and amortization (OBID) dropped from $109 million to $56 million. Also, the net loss per common share of $0.15 compares with net earnings of $0.22 per share in Q1 2021, the company press release said.
The company’s net debt surged higher from $1,351 million as of December 31, 2021 to $1,549 million as of March 31st, 2022.
Commenting on the results, Mario Plourde, President and CEO, Cascades noted that the Q1 2022 performance was disappointing and lower than what the company had expected. The escalation in production and operational costs coupled with logistics challenges impacted the quarterly results. The planned price increases in packaging segment will help offset input cost headwinds in future, he added.