KINGSEY FALLS, QC, Jan. 31, 2022 /PRNewswire/ - Cascades Inc. (TSX:
CAS) expects fourth quarter consolidated results to be below the
revised expectations communicated on December 22, 2021. On a consolidated basis, the
Corporation anticipates reported preliminary unaudited adjusted
operating income before depreciation and amortization
(OIBD)1 of $62 million.
The rapid escalation of the Omicron variant in the last two weeks
of December compounded already existing constraints in labour
availability and transportation and supply chain challenges,
primarily in the Containerboard and Tissue segments. These factors
triggered a notable and immediate escalation in costs and resulted
in unplanned production downtime in several of the Corporation's
operations and unprecedented challenges with product deliveries.
The effect of which was felt most notably in Canada, where the impacts of the flooding in
Western Canada continued to
disrupt rail transport and trucking. Cascades' management team will
provide additional detail and context in conjunction with the
Corporation's fourth quarter and full year 2021 results on
February 24, 2022.
Mario Plourde, President and CEO
commented: "Without question, we are very disappointed with our
performance in the fourth quarter. The ramifications from the
ongoing disruptions related to the pandemic, and the continuing
challenges in delivering products, have resulted in considerable
direct and indirect impacts and costs, often unpredictable, in our
business segments. We continue to adjust and respond to the rapidly
changing operational challenges and constraints, as needed, and
remain in close contact with our customers. With current trends
suggesting that the Omicron variant is moderating, we are hopeful
that pressures will begin easing through the first quarter."
1
|
Please refer to
the "Supplemental Information on Non-IFRS Measures" section in the
Corporation's public filings.
|
About Cascades
Founded in 1964, Cascades offers
sustainable, innovative and value-added packaging, hygiene and
recovery solutions. The company employs approximately
10,000 women and men across a network close to
80 facilities in North
America. Driven by its participative management, half a
century of experience in recycling, and continuous research and
development efforts, Cascades continues to provide innovative
products that customers have come to rely on, while contributing to
the well-being of people, communities and the entire planet.
Cascades' shares trade on the Toronto Stock Exchange under the
ticker symbol CAS.
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SOURCE Cascades Inc.