August 5, 2008 / 11:55 AM / 10 years ago

UPDATE 1-Cascades swings to loss on inflation, strong C$

(Adds details)

TORONTO, Aug 5 (Reuters) - Cascades Inc (CAS.TO) said on Tuesday it swung to a second-quarter loss, as inflation and the impact of a robust Canadian dollar offset the company’s cost-cutting measures.

The packaging and paper products company said it lost C$25 million ($24 million), or 25 Canadian cents a share, in the quarter ended June 30. That compares to a profit of C$45 million, or 45 Canadian cents per share, a year ago.

Excluding items such as restructuring costs, the company lost C$11 million, or 11 cents a share, in the quarter.

Earlier this year, Cascades said it would integrate its North American boxboard business with its containerboard operations, saying the move would improve profitability.

Quarterly sales slipped to C$999 million from C$1 billion.

Cascade said it was “cautiously optimistic” about the third quarter because of recently announced price increases, combined with a seasonal pickup in demand.

However, the company said it would consider other strategic alternatives if ongoing restructuring efforts failed to improve results. ($1=$1.04 Canadian) (Reporting by John McCrank; Editing by Bernadette Baum)

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