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, which has operations in Trenton and Belleville, says it now expects fourth-quarter adjusted operating income before depreciation and amortization to come in at $62 million.
On December 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 hard hit after the flooding in B.C. disrupted rail and trucking routes.
