Cascades Inc. (TSX: CAS) reports its unaudited financial results for the three-month period ended on September 30, 2018. Mario Plourde, President and Chief Executive Officer, commented: “Strong fundamentals in Container board Packaging were the driving factor behind our solid third quarter performance.
This was reinforced by successful margin realignment in Recovery activities, which contributed to improved quarterly earnings in Specialty Products. Results in the Tissue division continued to be impacted by rising raw material and logistics costs, in addition to the capacity-driven competitive reality.
While margins in this division were below expectations as a result of these factors and weather-related events, the solid quarterly sales performance highlights the underlying strength of our tissue platform, and supports the strategic investments being made to propel long term competitive positioning. Finally, the European Box board segment, via our 57.8 percent equity position in Reno de Medici S.p.A., announced solid results in the seasonally softer third quarter that delivered a marked improvement in profitability year-over-year.
On the strategic front, ramp-up of the new container board converting facility in Piscataway, N.J. progressed very well, and production from Maspeth, N.Y. has been transferred to the new facility earlier than expected. Engineering work and project analysis continue to be advanced for the Bear Island project in Virginia, with scope and plans expected to be finalized in the first half of 2019.
Founded in 1964, Cascades offers sustainable, innovative and value-added packaging, hygiene and recovery solutions. The company employs 11,000 women and men across a network of over 90 production units located in North America and Europe.