Cascades paper business revenue was $1.174 billion in the third quarter, up $144 million from the same period in 2021.
Net income per share fell to $0.20 year-over-year from $0.32 while operating income was flat, stabilizing at $44 million between the two periods under review.
The paper mill, based in Kingsey Falls in the Center-du-Québec region, has planned capital investments of US$121 million for the quarter ended September 30, which is expected to reach US$333 million in the first nine months of the year .
“Our third quarter performance is in line with expectations, although our tissue paper sector continued to face unprecedented cost inflation and reduced productivity,” said Mario Plourde, President and Chief Executive Officer of Waterfalls.
“On a consolidated basis, higher volumes and sales prices as well as an improved range of products sold have mitigated the ongoing cost headwinds sequentially and compared to the previous year,” it says in detail.
Mr. Plourde is cautious on the near-term outlook, particularly given inflationary pressures and more generally the macroeconomic environment and labor shortages.
“Our initiatives so far have met expectations, despite some delays in their implementation,” he said. However, we will not meet our production targets for which we continue to take additional measures to close the gap.”