KINGSEY FALLS, QC (News release) -- Cascades Inc. expects fourth quarter consolidated results to be below the revised expectations communicated on December 22, 2021. On a consolidated basis, the Corporation anticipates reported preliminary unaudited adjusted operating income before depreciation and amortization (OIBD)1 of $62 million. The rapid escalation of the Omicron variant in the last two weeks of December compounded already existing constraints in labour availability and transportation and supply chain challenges, primarily in the Containerboard and Tissue segments. These factors triggered a notable and immediate escalation in costs and resulted in unplanned production downtime in several of the Corporation's operations and unprecedented challenges with product deliveries. The effect of which was felt most notably in Canada, where the impacts of the flooding in Western Canada continued to disrupt rail transport and trucking. Cascades' management team will provide additional detail and context in conjunction with the Corporation's fourth quarter and full year 2021 results on February 24, 2022.
Mario Plourde, President and CEO commented: "Without question, we are very disappointed with our performance in the fourth quarter. The ramifications from the ongoing disruptions related to the pandemic, and the continuing challenges in delivering products, have resulted in considerable direct and indirect impacts and costs, often unpredictable, in our business segments. We continue to adjust and respond to the rapidly changing operational challenges and constraints, as needed, and remain in close contact with our customers. With current trends suggesting that the Omicron variant is moderating, we are hopeful that pressures will begin easing through the first quarter."
1 Please refer to the "Supplemental Information on Non-IFRS Measures" section in the Corporation's public filings.