SCA Reports Fourth Quarter, 2010 Results

Jan Johansson, president and CEO, SCA

Jan. 27, 2011 - Stockholm, Sweden-based SCA reported better volume in 2010 for all of its business segments and expects demand for its products to remain healthy in 2011.

Jan Johansson, SCA's president and CEO, commented on fourth quarter and 2010 financial results:

"During the year, SCA increased its volumes in all business areas and grew its market shares for the global brands Tena, for incontinence care, and Tork, in the away-from-home (AFH) tissue market. Together with higher prices for both Tissue and Packaging and cost-cutting measures, this compensated for negative exchange rate effects and SEK 5.2bn in higher raw material costs.

"The Packaging operations showed a sharp improvement in profitability. Net profit for the period rose 6% (10% excluding exchange rate effects), and earnings per share, including restructuring costs, rose 17%.

"Cash flow from current operations for 2010 was SEK 7,399m (11,490). The decrease is mainly attributable to a higher level of tied-up working capital as a result of higher raw material prices. Net debt decreased by SEK 6bn during the year."

FOURTH QUARTER 2010

"Net sales for the fourth quarter of 2010, excluding effects of exchange rate movements and divestments, rose 8% compared with the same quarter a year ago, as a result of higher prices and volumes.

"Operating profit for the fourth quarter of 2010, excluding restructuring costs and exchange rate effects, rose 5% compared with the same period a year ago. Price increases and cost-cutting measures, combined with higher volumes, compensated for SEK 1.7bn in higher raw material costs.

"During the fourth quarter of 2010, operating profit for Personal Care and Tissue decreased compared with the same quarter a year ago, mainly due to higher raw material costs. The improved operating profit for Packaging is mainly attributable to higher prices and volumes, and savings from the restructuring programme. Operating profit for Forest Products decreased as a result of a drop in prices for publication papers. Compared with the third quarter, operating profit improved for Personal Care, Tissue and Packaging.

OUTLOOK

Continued favorable demand is expected in all of SCA's business areas.

SCA's full financial report can be found on the company's Web site: www.sca.com.

SCA develops, produces and markets personal care products, tissue, packaging, publication papers and solid-wood products.

SOURCE: SCA