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Paper Recycling August 10, 2018 03:30:15 PM

Cascades Inc. Net Sales Hit New Record High in Q2

Paul Ploumis
ScrapMonster Author
The company witnessed key acquisitions and ramp up of operations during the quarter.
Cascades Inc. Net Sales Hit New Record High in Q2

SEATTLE (Scrap Monster): Cascades Inc. released unaudited financial results for the three-month period ended June 30, 2018. The recent strategic investments by the company contributed to significant improvement in performance of its core business. The solid market and pricing conditions helped the company deliver strong results.

The quarterly sales hit record high of $1,179 million in Q2 this year. Sequentially, the net sales were up by 7% from $1,098 million. Over the previous year, the sales reported a surge of 4%. The net sales had totaled $1,130 million in Q2 2017. However, the operating income including specific items declined sharply over the prior quarter by 35% to $73 million. When compared with the corresponding quarter in 2017, the income witnessed 52% surge. The adjusted net earnings per share of $0.30 stood significantly higher when compared with $0.13 in the prior quarter and $0.25 in the similar quarter in 2017.

The company witnessed key acquisitions and ramp up of operations during the quarter. Along with production ramp up at the new N.J. containerboard converting facility, the company announced acquisition of the Bear Island, Virginia newsprint mill, to be converted into recycled containerboard production. Also, the European Boxboard division announced acquisition of coated cartonboard producer Barcelona Cartonboard SAU.

The sales level of Specialty Products Division declined by 13% during the quarter. Tissue segment sales registered marginal increase, but overall performance by the segment continued to remain weak, mainly on account of higher raw material prices and less favorable pricing. The escalating transportation costs negatively impacted the results of company’s North American business.

Commenting on the near-term strategic outlook, Mr. Mario Plourde , President and Chief Executive Officer shared positive outlook for the third quarter, primarily aided by the continued strength in the Containerboard business. Specialty Products segment is expected to generate stronger results when compared with Q2 2018. Also, Plourde anticipates sequentially flat results from the Tissue segment.

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