Cascades has reported group sales of $1,230m – an increase of 3% compared to $1,196m in Q4 2018, and an increase of 12% from $1,098m in Q1 2018 – in its first quarter results.
Operating income for the company was $72m compared to an operating loss of $37m in Q4 2018, up 295%, but decreased 36% from $112m in Q1 2018.
Mario Plourde, president and chief executive, said: “We are pleased with our first quarter operational performance, with all of our business segments generating solid results that were in line with or above expectations.”
He added the company is “very pleased with the important sequential improvement generated by the Tissue Papers segment”.
He said: “At the centre of this were higher average selling prices owing to both improved sales mix and the implementation of price increases announced in 2018, in addition to lower raw material prices and lower production costs.
“Other significant events announced during the first quarter include the closure of the felt floor backing plant in our Specialty Products segment in Quebec, and two paper machines in Ontario in our Tissue segment.”
He added that the company is expecting near-term results to improve both sequentially and year-over-year for all of its North American business segments, taking into account usual seasonal trends and current market dynamics.
Plourde said: “Our outlook for Tissue is positive, driven by internal initiatives and expected improvements in market conditions, in addition to more favourable raw material pricing. “We are making progress with our internal initiatives to realign this segment’s operational and financial performance, the early effects of which we began to see in the current quarter.
“In addition, management is focused and confident that the steps being taken will successfully position this segment for long-term success.”
