Cascades sees Q4 profit climb on weakened loonie, improved productivity

KINGSEY FALLS, Que. – Cascades (TSX:CAS) reported a profit of $6 million for the fourth quarter, up from a $32 million loss a year earlier, as it benefited from improved productivity and a weakening Canadian dollar.

The manufacturer of green packaging and tissue paper products said it earned five cents per basic and diluted share for the three-month period ended Dec. 31, compared with a loss of 33 cents a year ago.

Net earnings from continuing operations came in at $5 million for the quarter, versus a loss of $33 million a year earlier.

Revenues were $958 million, up six per cent from $904 million in the prior year.

CEO Mario Plourde said that looking forward, the company expects the usual seasonal slowdown and a loss associated with a two-week shutdown at its Trenton container board mill to hurt earnings.

“Despite this, we are confident that we will increase our EBITDA and margins for a third consecutive year in 2014,” he said in a statement.

“While the outlook is encouraging for most of our sectors, the tissue industry currently faces the short-term challenge of additional capacity. We do not foresee important changes in the cost of recycled fibres and we should feel the impact of the depreciation of the Canadian dollar more fully starting next quarter.”

Cascades also noted that the company continues to face normal logistical challenges with the start up of its Greenpac mill in Niagara Falls, N.Y., but it is moving ahead as scheduled.

The company produces, converts and markets packaging and tissue products that are composed mainly of recycled fibres.