August 10, 2011 / 10:23 AM / 7 years ago

UPDATE 2-Higher fibre, pulp costs to squeeze Cascades profit

* Q2 revenue up 23 pct at C$991 mln (Adds details on input costs outlook, seasonal demand)

Aug 10 (Reuters) - Canada’s Cascades Inc posted a surprise second-quarter adjusted loss, and the packaging and paper products company said it expects higher costs of recycled fibre, pulp and energy to continue to squeeze profits.

The Kingsey Falls, Quebec-based company, which has been boosting selling prices in its tissue paper, specialty products and North American boxboard segments to offset higher input costs, forecast slightly improved seasonal demand for the next quarter.

“Elevated input costs and the strong Canadian dollar should, however, continue to put pressure on our profitability,” Chief Executive Alain Lemaire said in a statement.

For April-June, Cascades earned C$117 million, or $1.21 a share, compared with C$28 million, or 29 Canadian cents a share, a year ago.

Excluding items, the company posted a net loss of 6 Canadian cents a share compared with analysts’ estimates of earnings of 1 Canadian cent a share, according to Thomson Reuters I/B/E/S.

Revenue rose 23 percent to C$991 million.

Shares of company closed at C$5.22 on Tuesday on the Toronto Stock Exchange. (Reporting by Gowri Jayakumar in Bangalore; Editing by Roshni Menon)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below