Cas­cades earns $43-mil­lion in Q3

Stockwatch Daily - - INDUSTRIALS & MATERIALS - Mr. Mario Plourde re­ports

CAS­CADES INC. has re­leased its unaudited fi­nan­cial re­sults for the three-month pe­riod ended Sept. 30, 2018.

Third quar­ter 2018 high­lights:

• Sales of $1,172mil­lion (com­pared with $1,179mil­lion in the sec­ond quar­ter of 2018 (mi­nus 1 per cent) and $1,103-mil­lion in the third quar­ter of 2017 (plus 6 per cent));

• As re­ported (in­clud­ing spe­cific items):

• Op­er­at­ing in­come of $78-mil­lion (com­pared with $73-mil­lion in the sec­ond quar­ter of 2018 (plus 7 per cent) and $51-mil­lion in the third quar­ter of 2017 (plus 53 per cent));

• OIBD (1) of $139-mil­lion (com­pared with $131-mil­lion in the sec­ond quar­ter of 2018 (plus 6 per cent) and $104-mil­lion in the third quar­ter of 2017 (plus 34 per cent));

• Net earn­ings per com­mon share of 38 cents (com­pared with net earn­ings of 28 cents in the sec­ond quar­ter of 2018 and net earn­ings of 35 cents in the third quar­ter of 2017);

• Ad­justed (ex­clud­ing spe­cific items):

• Op­er­at­ing in­come of $76-mil­lion (com­pared with $76-mil­lion in the sec­ond quar­ter of 2018 (sta­ble) and $53-mil­lion in the third quar­ter of 2017 (plus 43 per cent));

• OIBD of $137 -mil lion (com­pared with $134-mil­lion in the sec­ond quar­ter of 2018 (plus 2 per cent) and $106-mil­lion in the third quar­ter of 2017 (plus 29 per cent));

• Net earn­ings per com­mon share of 40 cents (com­pared with net earn­ings of 30 cents in the sec­ond quar­ter of 2018 and net earn­ings of 20 cents in the third quar­ter of 2017);

• Net debt of $1,573-mil­lion as at Sept. 30, 2018 (com­pared with $1,586-mil­lion as at June 30, 2018), and net debt to ad­justed OIBD ra­tio at 3.2 times on a pro forma ba­sis.

(See CAS Ta­ble 1 on page 32)

Mario Plourde, pres­i­dent and chief ex­ec­u­tive of­fi­cer, com­mented: “Strong fun­da­men­tals in con­tainer­board pack­ag­ing were the driv­ing fac­tor be­hind our solid third quar­ter per­for­mance. This was re­in­forced by suc­cess­ful mar­gin re­align­ment in re­cov­ery ac­tiv­i­ties, which con­trib­uted to im­proved quar­terly earn­ings in spe­cialty prod­ucts. Re­sults in the tis­sue di­vi­sion con­tin­ued to be im­pacted by ris­ing raw ma­te­rial and lo­gis­tics costs, in ad­di­tion to the ca­pac­ity-driven com­pet­i­tive re­al­ity. While mar­gins in this di­vi­sion were be­low ex­pec­ta­tions as a re­sult of these fac­tors and weather-re­lated events, the solid quar­terly sales per­for­mance high­lights the un­der­ly­ing strength of our tis­sue plat­form, and sup­ports the strate­gic in­vest­ments be­ing made to pro­pel long-term com­pet­i­tive po­si­tion­ing. Fi­nally, the Euro­pean boxboard seg­ment, via our 57.8-per-cent eq­uity po­si­tion in Reno de Medici SpA, an­nounced solid re­sults in the sea­son­ally softer third quar­ter that de­liv­ered a marked im­prove­ment in prof­itabil­ity year over year.”

We seek Safe Har­bor.

Erika Flores con­densed this news re­lease (erikaf@stock­watch.com).

Michelle Ann Cormier, Martin Cou­ture, Louis Garneau, Ge­orges Ko­bryn­sky, Alain Le­maire, Pa­trick Le­maire, Sylvie Le­maire, David Ly­man McAus­land, Elise Pel­letier, Mario Plourde, Laurence G Sel­lyn, Sylvie Va­chon

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