Cascades Inc. revises down Q4 outlook as labour and logistics issues worsen

A Cascades plant is seen in Laval, Que. on Wednesday, November 25, 2020. THE CANADIAN PRESS/Paul Chiasson

Cascades Inc. says it expects its fourth-quarter results to fall below its already revised outlook after Omicron-related labour shortages and supply chain issues worsened in the latter half of December.

The company says it now expects fourth-quarter adjusted operating income before depreciation and amortization to come in at $62 million.

On Dec. 22, Cascades warned that its fourth-quarter adjusted operating income before depreciation and amortization would be about $20 million below the third-quarter comparable result of $107 million.

The company says the COVID-19 variant has compounded existing constrains on labour and transportation, especially in its containerboard and tissue segments.

It says the shortages have led to higher costs and unplanned downtime in several options, while the company is also seeing inflationary costs in logistics and energy.

The company says its Canadian operations were especially hit after the flooding in B.C. disrupted rail and trucking routes.

- This report by The Canadian Press was first published Jan. 31, 2022.