Cascades Announces Strong Annual Net Earnings for 2017, and Releases Results for the Fourth Quarter of 2017

KINGSEY FALLS, QC, March 1, 2018

Q4 2017 Highlights

• Sales of $1,082 million (compared to $1,103 million in Q3 2017 (-2%) and $979 million in Q4 2016 (+11%))
• As reported (including specific items)
• Operating income of $45 million (compared to $51 million in Q3 2017 (-12%) and $33 million in Q4 2016 (+36%))
• OIBD¹ of $104 million (compared to $104 million in Q3 2017 and $83 million in Q4 2016 (+25%))
• Net earnings per common share of $0.60 (compared to net earnings of $0.35 in Q3 2017 and net earnings of $0.04 in Q4 2016)
• Adjusted² (excluding specific items)
• Operating income of $46 million (compared to $53 million in Q3 2017 (-13%) and $32 million in Q4 2016 (+44%))
• OIBD of $105 million (compared to $106 million in Q3 2017 (-1%) and $82 million in Q4 2016 (+28%))
• Net earnings per common share of $0.14 (compared to net earnings of $0.20 in Q3 2017 and net earnings of $0.16 in Q4 2016)
• US 2017 tax reform reduces future tax liabilities by $57 million

2017 Annual Highlights

• Sales of $4,321 million (compared to $4,001 million in 2016 (+11%))
• As reported (including specific items)
• Operating income of $175 million (compared to $221 million in 2016 (-21%))
• OIBD of $390 million (compared to $413 million in 2016 (-6%))
• Net earnings per common share of $5.35 (compared to net earnings of $1.42 in 2016)
• Adjusted² (excluding specific items)
• Operating income of $178 million (compared to $211 million in 2016 (-16%))
• OIBD of $393 million (compared to $403 million in 2016 (-2%))
• Net earnings per common share of $0.72 (compared to net earnings of $1.21 in 2016)
• Net debt of $1,522 million as at December 31, 2017 (compared to $1,532 million as at December 31, 2016) and net debt to adjusted OIBD ratio³ of 3.6x, down from 3.8x at year-end 2016.

1	OIBD = Operating income before depreciation and amortization.
2 ARIVA.DE Börsen-Geflüster Kurse Cascades 6,73 $ +0,30%	For further details, please refer to the "Supplemental Information on non-IFRS Measures" section.
3	Pro-forma basis to include 2017 business combinations on a LTM basis.

Mr. Mario Plourde, President and Chief Executive Officer, commented: "Our fourth quarter results reflect year-over-year improvements in shipments, sales, and operating income on a consolidated basis. This was driven by solid performances from our containerboard division and European subsidiary Reno de Medici, where more favourable pricing and mix outweighed the impact of higher average raw material costs. In the case of containerboard, results also benefited from the consolidation of the Greenpac Mill results beginning in the second quarter of 2017. The specialty products segment delivered results that were below prior year levels due to a lower contribution from recovery and recycling activities. Our tissue division continued to face challenging market conditions in the fourth quarter, which resulted in production downtime to manage inventory. These factors, combined with a less favourable sales price and product mix, higher raw material prices and costs related to the ramp up of the new Oregon converting facility, impacted sales and profitability levels in this segment.

Sequentially, consolidated fourth quarter results reflected a less pronounced seasonal contraction than in prior years. This was primarily driven by results in our containerboard division, which generated increases in sales and operating income compared to the previous quarter, reflecting lower raw material prices and healthy demand. European boxboard operations also performed well, highlighting stronger business conditions, while results in our specialty products division remained relatively stable. Finally, our tissue segment performance was negatively impacted by lower volumes related to both seasonal demand variations and difficult market conditions, and a less favourable sales price and product mix.

We continued to make progress on strategic initiatives in 2017. At the corporate level, our internal business process transformation and ERP system initiatives progressed well, with implementations now largely completed. In the containerboard group, we finalized the sale of the Maspeth, NY, converting facility in January 2018 for US$72 million, increased our ownership position in the Greenpac Mill to 66.1%, began the construction of a new state-of-the-art containerboard converting facility in New Jersey, and strengthened our position in Canada with the acquisition of three converting plants and purchase of an interest in Tencorr Holdings Corporation. The European boxboard segment also acquired the Italian boxboard processing company Pac Service S.p.A, by purchasing the 66.67% of shares that it did not already own. Finally, we continued to deliver on our commitment to lower our debt. To this end, our leverage ratio¹ stood at 3.6x as of the end of 2017, down from 3.8x in 2016, and we successfully redeemed US$200 million of our US-denominated debt, which reduces our interest expense and exposure to currency fluctuations."

Financial Summary

Selected consolidated information
(in millions of Canadian dollars, except amounts per common share) (unaudited)			2017			2016			Q4 2017			Q3 2017			Q4 2016
Sales			4,321			4,001			1,082			1,103			979
As Reported
	Operating income before depreciation and amortization (OIBD)1		390			413			104			104			83
	Operating income		175			221			45			51			33
	Net earnings		507			135			57			33			4
		per common share	$	5.35		$	1.42		$	0.60		$	0.35		$	0.04
Adjusted1
	Operating income before depreciation and amortization (OIBD)		393			403			105			106			82
	Operating income		178			211			46			53			32
	Net earnings		68			114			13			19			15
		per common share	$	0.72		$	1.21		$	0.14		$	0.20		$	0.16
	Margin (OIBD)		9.1		%	10.1		% Werbung Mehr Nachrichten zur Cascades Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 26.04.24 - PR Newswire Samson Rock Capital LLP - Form 8.3 - Spirent Communications PLC 26.04.24 - PR Newswire Samson Rock Capital LLP - Form 8.3 - Shanta Gold Ltd Sehen Sie sich dieses Unternehmen an:    Foto: andreas160578 - Pixabay Rasanter Aufstieg, Branchenrevolution und Jahresumsatz von 50 Mio. $ weiterlesen» Anzeige wo-site-teaser-box-16764_site-teaser-box_2024-04-26_09%253A00%253A00_2024-04-27_09%253A00%253A59