Cascades Reports Results for the Third Quarter of 2020

Q3 2020 Highlights
*Sales of $1,275 million (compared with $1,285 million in Q2 2020 (-1%) and $1,264 million in Q3 2019 (+1%))
*As reported (including specific items)
+Operating income of $73 million (compared with $94 million in Q2 2020 (-22%) and $108 million in Q3 20192 (-32%))
+Operating income before depreciation and amortization (OIBD)1 of $154 million (compared with $169 million in Q2 2020 (-9%) and $181 million in Q3 20192 (-15%))
+Net earnings per share of $0.51 (compared with $0.57 in Q2 2020 and $0.45 in Q3 20192)
*Adjusted (excluding specific items)1
+Operating income of $81 million (compared with $111 million in Q2 2020 (-27%) and $88 million in Q3 2019 (-8%))
+OIBD of $162 million (compared with $186 million in Q2 2020 (-13%) and $161 million in Q3 2019 (+1%))
+Net earnings per share of $0.50 (compared with $0.61 in Q2 2020 and $0.30 in Q3 2019)
*Added US$300 million of Senior Notes due in 2028; Redeemed US$200 million of remaining 2023 Senior Notes.
*Net debt1 of $1,982 million as at September 30, 2020 (compared with $2,077 million as at June 30, 2020) reflecting solid cash flow from operations. Net debt to adjusted OIBD ratio1 at 3.0x down from 3.1x as at June 30, 2020.
*European Boxboard business announced the acquisition of Papelera del Principado S.A. (“Paprinsa”).
*Announced plans for the Bear Island containerboard conversion project in Virginia, USA in October and concurrently completed a bought deal equity issue of 7,441,000 shares priced at $16.80, generating gross proceed of $125 million to finance a portion of the project.
*Announced the closure of two tissue production and converting operations in Pennsylvania.

Mario Plourde, President and CEO, commented: “We are pleased with our consolidated third quarter results. Within an ever-evolving business environment, demand levels for containerboard remained robust. This strength drove higher sequential quarterly sales volume in this business, offsetting higher energy costs and an approximate $3 million impact from unplanned operational shutdowns at our Niagara Falls, NY complex. Similarly, our Specialty Products segment generated solid results, benefiting from strong demand for our sustainable food packaging product offerings. Results in our Tissue business were mixed. As expected, demand remained strong for consumer tissue, while the reverse was true for Away-from-Home products given the impact that Covid-19 is having on businesses, restaurants, hotels and schools. This segment, which accounts for approximately 40% of our annual tissue sales, experienced sharp decreases in demand for some products. We have taken steps to adjust production capacity by temporarily closing several facilities that serve this market, and continue to evaluate opportunities to adapt some capacity for different products. Lastly, results in the European Boxboard segment reflected the usual softer seasonal third quarter volumes, the effects of which were partially offset by favourable raw material pricing and lower energy costs.
more at source: https://www.cascades.com/en/news/cascades-reports-results-third-quarter-2020

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