Cascades reports net quarterly loss of $34 million
Cascades Inc. has posted a quarterly net loss of $34 million in its fourth quarter of 2010 on sales of $991 million. Over the entire 2010 year, Cascades is reporting a net earning of $17 million on sales of $3.959 billion.
Commenting on the annual and fourth quarter results, Alain Lemaire, President and Chief Executive Officer stated: “Overall, we delivered solid results considering the strong headwinds we faced. In 2010, the cost of recycled fibres and pulp reached a new historical peak and the Canadian dollar averaged its highest value since 1976. Despite these negative factors, we continued to progress and posted our second-highest adjusted net earnings in the past 8 years. We also returned $20 million to our shareholders through dividends and share buybacks and, aligned with one of our main financial objectives, we generated more than $70 million in free cash flow to pay down debt. All in all, this performance clearly demonstrates the positive impact of our various strategic initiatives, our efforts in innovation, sales and marketing as well as our cost reduction and restructuring measures.”
Lemaire added: “Looking ahead to the first quarter, demand should remain healthy and even slightly improve along with seasonality. High raw material costs and the strong Canadian dollar will however continue to put pressure on our profitability.
For 2011, we are well positioned to continue delivering good earnings and free cash flow as we should benefit from the ongoing economic recovery and the several selling price increases that were implemented in the previous year. In addition, our recently announced divestiture and refinancing will have a positive impact on our financing expenses and free cash flow and allow us to strategically invest in the development of our core packaging, tissue and recovery operations.”
Founded in 1964, Cascades produces, converts and markets packaging and tissue products that are composed mainly of recycled fibres. The company employs close to 12,500 employees, who work in more than 100 units located in North America and Europe.
Review full financial news release:
Cascades reports Fourth quarter and Full Year 2010 results (Cascades)
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