SCA Reports 2011 Year-end, 4th Quarter Results

Jan. 26, 2012 - SCA today reported overall financial results for the period Jan. 1 - Dec. 31, 2011 (compared with same period a year ago), including the packaging operations held for sale.

  • Net sales decreased by 1% (increased by 4% excluding exchange rate effects and divestments) to SEK 105,750m (106,965)
  • Operating profit excluding items affecting comparability decreased by 4% (unchanged excluding exchange rate effects) to SEK 9,224m (9,608)
  • Items affecting comparability, write-downs of goodwill, restructuring costs, etc., amounted to SEK 5,676m (931)
  • Earnings per share, including items affecting comparability, were SEK 0.78 (7.90)
  • Cash flow from current operations was SEK 6,383m (7,399)
  • The Board of Directors proposes an increase in the dividend by 5%, to SEK 4.20 (4.00) per share
  • An agreement was reached after year-end to divest SCA’s packaging operations, excluding the kraftliner operations. Net sales and operating profit for these operations, excluding items affecting comparability, amounted to SEK 24,413m (24,234) and SEK 1,486m (1,113), respectively, corresponding to earnings per share of SEK 0.73

CEO’S COMMENTS

Jan Johansson, President and CEO, SCA.

Jan Johansson, President and CEO, issued the fiollowing statement:

"In November 2011 and January 2012 SCA announced two major transactions. In November a binding offer was made for Georgia-Pacific’s European tissue operations, and in January 2012 the divestment of SCA’s packaging operations, excluding the two kraftliner mills in Sweden, was announced. Together these two transactions will entail major synergies, lower sensitivity to economic swings and gradually higher earnings per share.

"During the financial year SCA carried out important efficiency improvement measures, stepped up the pace in its launch of new products and achieved growth in both mature and emerging markets. Sales increased in all business areas, and net sales for 2011, excluding exchange rate effects and divestments, rose 4% compared with a year earlier. Growth in the hygiene operations remained good in emerging markets, where Personal Care and Tissue grew sales by 13% and 10%, respectively. To take advantage of growth opportunities in the hygiene operations and strengthen our positions in emerging markets, during the year we carried out acquisitions and investments in Brazil, Turkey and Russia, among other places.

"Operating profit excluding items affecting comparability and exchange rate effects was level with the preceding year. Price increases and cost savings carried out in combination with increased volumes compensated for SEK 3.2bn in higher raw material costs and higher energy and distribution costs. Profit for the year excluding items affecting comparability and exchange rate effects decreased by 2% compared with the preceding year.

"Net sales for the fourth quarter of 2011 excluding exchange rate effects and divestments increased by 1%, and operating profit excluding items affecting comparability and exchange rate effects increased by 1% compared with the fourth quarter a year ago.

"Compared with the third quarter, operating profit for the fourth quarter excluding items affecting comparability rose 4%, while net sales were largely unchanged. The operating margin for the hygiene operations continued to grow. Continued good demand is expected for SCA’s hygiene operations."

SOURCE: SCA