Cascades Inc. has reported its unaudited financial results for the three-month period ended June 30, 2024.
The Corporation’s second quarter 2024 results increased sequentially on stronger performances from all three business segments. In Tissue Papers, the sequential impact from higher raw material costs was mitigated by favourable volume and lower transportation costs. Higher volume combined with slightly stronger pricing in the Specialty Products business outweighed sequentially higher average raw material costs.
The Containerboard segment saw stronger pricing, volume and mix, and lower transportation and energy costs, the combined impact of which offset higher raw material costs and extended downtime at the Greenpac and Bear Island mills following a prolongation of planned maintenance at these facilities, which reduced production capacity in the second quarter by approximately 8,000 tons.
Q2 2024 Highlights include;
- Sales of $1,180m (compared with $1,109m in Q1 2024 and $1,168m in Q2 2023);
- Operating income of $34m (compared with $9m in Q1 2024 and $64m in Q2 2023);
- Total capital expenditures, net of $17m of disposals, totaled $23m in Q2 2024, compared to $41m in Q1 2024 and $104m in Q2 2023. The Corporation’s 2024 forecasted net capital expenditures will be below our initial forecast of $175m.
Hugues Simon, President and CEO, commented, “In my first eight weeks at Cascades, I have been inspired by the Company-wide drive to create meaningful value for our customers and shareholders. We expect consolidated third quarter results to be stronger sequentially, driven by improved Containerboard results as price increases are implemented and production efficiency levels are normalized following planned maintenance in the second quarter, and the unplanned extended downtime at Bear Island and Greenpac.”
