Cascades Inc. Announces Exemplary Operating Results for 2017

SEATTLE (Scrap Monster): Cascades Inc. has announced the fourth quarter and full year 2017 financial results.

The Q4 ’17 sales totaled $1,082 million, significantly higher by 11% as compared with $979 million in Q4 2016. The operating income, excluding specific items, surged higher by 44% from $32 million a year before to $46 million in Q4 last year.

Meantime, annual sales too jumped higher by 11% over the previous year to total $4,321 million. The adjusted operating income declined by 16% from $211 million in 2016 to $178 million in 2017. Also, net debt as at December 31, 2017 stood at $1,522 million, compared with $1,532 million as at end-2016.

Commenting on the results, Mr. Mario Plourde , President and Chief Executive Officer noted that year-on-year improvements in shipments, sales and operating income was mainly on account of the solid performances from its containerboard division and European subsidiary Reno de Medici. The consolidation of the recently acquired Greenpac mill results also contributed to the positive containerboard results.

ALSO READ: Cascades, Inc. Wins Distinguished Accolade for Packaging Innovation

On the other hand, lower contribution from recovery and recycling activities impacted the results of specialty products segment. The tissue division continued to face extremely challenging market conditions. Less favorable price and product mix, coupled with high raw material costs and rising costs impacted profitability levels.

The year 2017 marked a number of key strategic acquisitions for the company. The finalization of sale of the Maspeth, NY converting facility, raising the ownership position ion Greenpac Mill to 66.1%, commencement of construction of containerboard converting facility New Jersey facility, acquisition of three Canadian converting plants and purchase of an interest in Tencorr Holdings Corporation are a few among them. The European operations too witnessed considerable expansion through acquisition of the Italian boxboard processing company Pac Service S.p.A.

The company announced its intention to invest $250 to $300 million in the coming year towards improving operational efficiency and expanding geographic footprints.