Label and Graphic Materials Segment: • Reported sales increased 11.8 percent. Sales ex. currency increased 4.2 percent; on an organic basis, sales grew 3.6 percent. Sales on an organic basis increased mid-single digits in Label and Packaging Materials and increased low-single digits in the combined Graphics and Reflective Solutions businesses. • Reported operating margin decreased 30 basis points to 12.3 percent, reflecting the impact of restructuring actions. Adjusted operating margin increased 20 basis points to 13.0 percent as the benefits of increased volume and productivity more than offset higher employee-related costs and the net impact of pricing and raw material costs. Click Read More below for additional information.
Cascades Inc. (TSX: CAS), leader in the recovery and manufacturing of green packaging and tissue products, is pleased to announce that it has taken a majority position in Longhorn Paper Converting, a tissue converting plant in Grand Prairie, Texas , USA.
While recent investments have consolidated Cascades’ presence on the American west coast, this latest initiative will expand its coverage of the US even further. Owing to its strategic location, this converting plant will foster synergies and enhance Cascades’ integration rate in the region by converting parent rolls manufactured in other Cascades plants.
“This heightened presence in south-central US is a concrete example of our company’s desire to serve its customers coast-to-coast,” commented Mario Plourde, President and Chief Executive Officer of Cascades. “This initiative, which is part of our strategic development plan, will allow us to continue to grow in a region that offers potential for this core segment of our business.”
“This investment has widened our presence in the US and will allow to take another important step toward achieving our objective of expanding into key markets in the southern and western United States. It will also enable us to provide even greater quality and flexibility to our American customers. Moreover, Longhorn Paper Converting offers us medium-term growth opportunities,” underscored Jean Jobin, President and Chief Operating Officer of Cascades Tissue Group.
The terms and conditions of the transaction have not been disclosed.