Cascades Inc. Increases its Profitability (Part 1 of 2 - Financial Tables Will Follow).MONTREAL--(BUSINESS WIRE)--April 30, 1998--CASCADES INC inc - /ink/ increment, i.e. increase by one. Especially used by assembly programmers, as many assembly languages have an "inc" mnemonic. Antonym: dec. . (ME:CAS.) (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :CAS.) Cascades Inc. announced net earnings of $14M or $0.21 per share for the quarter ended March 31, 1998 compared with $3M or $0.02 for the same period last year. More than two thirds of this improvement was generated by Cascades' wholly-owned subsidiaries and by the containerboard group which is now part of Norampac Inc. The balance was provided by a record quarter posted by Rolland Inc. and enhanced performance by Paperboard Industries International Inc. Overall sales of the Corporation increased by 33 percent from $488M for the quarter ended March 31, 1997 to $649M for the same quarter in 1998. This increase stems mainly from a significant adjustment of selling prices in the containerboard sector and merger and acquisitions made in 1997. PAPERBOARD INDUSTRIES INTERNATIONAL INC. Compared with the quarter ended December 31, 1997, results remained stable. The improved profitability of the North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. and European boxboard box·board n. A firm cardboard used for making boxes. mills, as well as the reduction in losses posted by Somerville Packaging were counterbalanced coun·ter·bal·ance n. 1. A force or influence equally counteracting another. 2. A weight that acts to balance another; a counterpoise or counterweight. tr.v. by the impact of the sale of the Ontario Corrugating Division to Norampac Inc. as of December 30, 1997 as well as the decrease in selling prices and reduced shipments of fluff pulp. ROLLAND INC. Provincial Papers, acquired during the second quarter of 1997, greatly contributed to the increase in Rolland's profitability. This mill operated at full capacity and took advantage of improved market conditions in the second semester of 1997. Furthermore, Provincial Papers further developed its synergies with the Fine Papers Division and also benefited from a cost-reduction program and the rationalization of its production. The Distribution Division also posted a turnaround as a result of reductions of its operating costs operating costs npl → gastos mpl operacionales . PERKINS PAPERS LTD LTD 1 Laron-type dwarfism 2 Leukotriene D 3 Long-term depression, see there 4. Long-term disability . Profitability during this quarter was affected by a three-week shutdown of machines 1 and 3 at the Kingsey Falls mill in order to complete the installation of new equipment as set out in its three-year capital investment plan, as well as market conditions which remained highly competitive. In the retail market, Perkins increased shipments by 7 percent compared with the first quarter of 1997 as a result of its marketing efforts in Ontario and the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . In the commercial and industrial market, the Corporation entered into new agreements with major Canadian and American clients thereby continuing to develop its target sectors. This translated into a 14 percent increase in shipments compared to the first quarter of 1997. NORAMPAC INC. During its first operating quarter, Norampac posted sales of $235M as well as earnings before interest, taxes and depreciation EBITD is an initialism or acronym for Earnings Before Interest, Taxes and Depreciation. See EBITDA. Some people find it useful to know this value for a business. ("EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become ") of $21M attaining a margin of 9 percent. The weakness in demand for containerboard products as well as increasing levels of inventories of these products in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. forced most producers to take market-related downtime at one point during this quarter. Norampac took one week of downtime at its Niagara Falls Niagara Falls, waterfall, United States and Canada Niagara Falls, in the Niagara River, W N.Y. and S Ont., Canada; one of the most famous spectacles in North America. The falls are on the international line between the cities of Niagara Falls, N.Y. and Trenton mills. Selling prices remained relatively stable during this quarter. CASCADES INC., SPECIALTY PRODUCTS The EBITDA of this group, wich included the containerboard group in 1997 transferred to Norampac as at December 30, 1997, increased by 40 percent from $10M for the quarter ended March 31, 1997 to $14M for the corresponding period in 1998. This significant increase was due to solid results posted in our converting, uncoated board and kraft paper sectors. CASH FLOW AND FINANCIAL POSITION Cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses for the first quarter of 1998 was $53M or $0.79 per share compared with $31M or $0.50 per share for the corresponding period in 1997. Capital expenditures totalling $45M were made during this quarter. Paperboard Industries International Inc. completed the installation of new equipment at its boxboard mills in Toronto and Jonquiere and also installed sheeters at the new sheeting and distribution centres in the United States and England. The first cash disbursements related to the reopening of the kraft pulp mill A pulp mill is a manufacturing facility that converts wood chips or other plant fiber source into a thick fiber board which can be shipped to a paper mill for further processing. belonging to FjordCell in Jonquiere were also realized. Furthermore, Rolland Inc. invested in its new conversion plant and Perkins Papers Ltd. continued its three-year capital investment program. Norampac Inc. invested approximately $9M mainly in the Red Rock and Avot-Vallee mills. Finally, the Specialty Products Division invested close to $10M during this quarter. DIVIDEND ON COMMON SHARES Cascades announces the payment of an annual dividend of $0.10 per common share payable on June 22, 1998 to all shareholders of record on June 8, 1998. OUTLOOK In the coming quarters, Cascades believes that the markets will continue to improve for its principal subsidiaries. Few capacity additions have been announced and there seems to be an even greater tendency towards consolidation. Furthermore, there is a growing demand for our specialized products and selling prices are expected to remain stable. Therefore, Cascades will continue to generate increased profitability during the next quarters. CONTACT: Cascades Inc. Mr. Andre Belzile, 514/282-2600 abelzile@cascades.com or Cascades Inc. Mr. Stephane Milot, 514/282-2681 smilot@cascades.com |
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