Cascades Inc. announces that it will discontinue manufacturing felt backing for flooring at its Lupel plant in Trois‑Rivières, Québec. In total, 35 employees will be affected by the resulting plant closure, which is expected on or about July 1, 2019. As a result of this decision, Cascades will be permanently withdrawing from felt production for the floor covering market. "Despite efforts to increase sales levels at the plant, the drop in popularity of vinyl flooring and the gradual market shift from felt backing toward fibreglass backing has had a serious negative impact on the plant's operations. Unfortunately, the resulting low production volumes mean that the plant is not profitable, a trend that is not expected to reverse given the market outlook. In these circumstances, we unfortunately have little choice but to announce that the plant will cease operating," said Luc Langevin , President and Chief Operating Officer of Cascades Specialty Products Group. Click Read More below for additional detail.
INTERFOR CORPORATION (“Interfor” or “the Company”) (TSX: IFP) recorded net earnings in Q4’16 of $26.6 million, or $0.38 per share, compared to $15.1 million, or $0.22 per share in Q3’16 and a loss of $3.5 million, or $0.05 per share in Q4’15. Adjusted net earnings1 (which takes into account the effects of share-based compensation expense and non-recurring items) in Q4’16 were $17.7 million or $0.25 per share, compared to $20.7 million, or $0.30 per share in Q3’16 and $4.5 million, or $0.06 per share in Q4’15.
Adjusted EBITDA was $51.3 million on sales of $442.3 million in Q4’16 versus $58.1 million on sales of $457.6 million in Q3’16.
For the year, net earnings were $65.6 million, or $0.94 per share, compared to a loss of $30.4 million or $0.44 per share in 2015. Adjusted EBITDA was a record $199.6 million, eclipsing the previous record set in 2014.
Notable items in the quarter included:
* Strong Cash Flow and Proceeds from Tacoma Sale contributes to $57.4 million in Net Debt Reduction
– Interfor generated $49.0 million in cash from operations, after considering working capital changes in Q4’16.
– The sale of the former sawmill property in Tacoma, WA closed in Q4’16 with cash proceeds of US$31.5 million. The net proceeds are approximately US$20.4 million after taking account of transaction costs and the US$10.0 million due to the former owner that was paid in January, 2017.
– Capital spending was $19.8 million in Q4’16.
– The resulting free cash flow contributed to a reduction in net debt to $289.6 million, or 26.9% of invested capital. For the year, net debt was reduced by $162.8 million.
* Mixed Lumber Prices and Lower C$
– Key benchmark lumber prices were mixed in Q4’16. The Southern Pine Composite increased US$11 to US$393 per mfbm as stronger prices for 2×4 and 2×8 more than offset weaker prices for 2×6, 2×10 and 2×12. At the same time, the Western SPF Composite and KD H-F Stud 2×4 9’ benchmarks declined US$6 to US$305 per mfbm and US$18 to US$318 per mfbm respectively.
– The C$ weakened by 2.2% to US$0.750 quarter-over-quarter thereby offsetting, in part, the drop in SPF and H-F prices.
more detail at: http://www.interfor.com/sites/default/files/docs/reports/Interfor-Reports-Year-End-And-Q4-16-Results.pdf