Cascades has said all segments executed well in its second quarter results, with its tissue results supported by favourable input costs and selling prices. For the three-month period ended 30 June 2019, the company reported a 4% sales increase to $1,275m compared to $1,230m in Q1 2019. It was an increase of 8% compared to $1,180m in Q2 2018. Specifically,
tissue sales increased by $34m – or 10% – reflecting a higher average selling price, a more favourable sales mix and exchange rate, partially offset by slightly lower volume following the previously announced closure of two paper machines in Ontario.
Operating income was $82m, up 14% compared to $72m in Q1 2019 and up 12% from $73m in Q2 2018. Mario Plourde, president and chief executive, said: “Cascades delivered record quarterly sales and adjusted OIBD that were in line with expectations in the second quarter.
“All our segments executed well. Tissue results were supported by favourable input costs and selling prices and better operational performance, notably at the St. Helens mill in Oregon.
“Containerboard Packaging performance reflected lower OCC prices and good operational flexibility within a context of softer demand and pricing pressure, while European Boxboard and Specialty Products results benefited from recent business acquisitions.”
Following the announcement of the acquisition of substantially all of the Orchids Paper Products assets in early July, he added: “This move provides compelling optimisation opportunities for our tissue platform while reinforcing the operational foundation of this segment’s US consumer product business.
“Furthermore, the addition of these assets accelerates our ongoing tissue modernisation plan, is aligned with our efforts to enhance the quality of theproducts we manufacture, and reinforces our initiatives to support the growth of our customers and the segment.”
Plourde added that the company’s tissue performance was expected to continue its positive trend in the third quarter.