The Canadian Press - ONLINE EDITION

Recycled paper and packaging company Cascades posts Q2 loss on higher sales

  • Print

KINGSEY FALLS, Que. - Cascades Inc. (TSX: CAS) reports a second-quarter loss of $83 million, impacted by such factors as its exit from the kraft paper business and a European mill closure.

That amounts to 88 cents per share, compared with a net profit of $2 million, or three cents per share, in the same quarter in 2013.

Excluding items, adjusted net earnings amounted to $7 million, or eights cents per share, compared with $8 million, or nine cents per share, for the same period in 2013.

In July, Cascades announced the closure of its kraft paper plant in East Angus, Que., cutting 175 jobs. Cascades has said the closure was due to unfavourable market conditions and the inability to finalize a sale of the plant. Kraft paper is used to make envelopes, promotional materials and fast-food wrapping.

The Quebec company also announced the sale of its fine papers division to Rolland Enterprises Inc., a subsidiary of H.I.G. Capital, for $39.5 million, closed a boxboard mill in Sweden and refinanced some of its debt.

"These decisions, while having a negative impact on our net results in the short term, will positively impact our profitability in the medium and long term and give us more flexibility to invest in our strategic assets," president and CEO Mario Plourde said Tuesday in a statement.

"Even if some of these decisions were difficult to make, we need to appreciate the progress achieved and keep in mind that they will strengthen the financial situation of the company," Plourde said.

Fact Check

Fact Check

Have you found an error, or know of something we’ve missed in one of our stories?
Please use the form below and let us know.

* Required
  • Please post the headline of the story or the title of the video with the error.

  • Please post exactly what was wrong with the story.

  • Please indicate your source for the correct information.

  • Yes

    No

  • This will only be used to contact you if we have a question about your submission, it will not be used to identify you or be published.

  • Cancel

Having problems with the form?

Contact Us Directly
  • Print

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

Have Your Say

New to commenting? Check out our Frequently Asked Questions.

Have Your Say

Comments are open to Winnipeg Free Press print or e-edition subscribers only. why?

Have Your Say

Comments are open to Winnipeg Free Press Subscribers only. why?

The Winnipeg Free Press does not necessarily endorse any of the views posted. By submitting your comment, you agree to our Terms and Conditions. These terms were revised effective April 16, 2010.

letters

Make text: Larger | Smaller

LATEST VIDEO

City Beautiful trailer: How architecture shaped Winnipeg's DNA

View more like this

Photo Store Gallery

  • A mother goose has chosen a rather busy spot to nest her eggs- in the parking lot of St Vital Centre on a boulevard. Countless cars buzz by and people have begun to bring it food.-Goose Challenge Day 06 - May 08, 2012   (JOE BRYKSA / WINNIPEG FREE PRESS)
  • A monarch butterfly looks for nectar in Mexican sunflowers at Winnipeg's Assiniboine Park Monday afternoon-Monarch butterflys start their annual migration usually in late August with the first sign of frost- Standup photo– August 22, 2011   (JOE BRYKSA / WINNIPEG FREE PRESS)

View More Gallery Photos

Poll

What's your favourite Halloween treat to hand out?

View Results

Ads by Google