SCA First Quarter Profit Up 25% on Personal Care, Tissue Volumes
Jan Johansson, President and CEO, SCA.
April 29, 2013 - SCA's chief executive Jan Johansson said first quarter profit rose about 25% on recent acquisitions that in turn resulted in increased volumes and sales in the company's Personal Care and Tissue business segments.
"The hygiene operations are showing favorable sales growth and improved earnings. The lower earnings for Forest Products are mainly attributable to negative exchange rate effects and lower prices for publication papers," Johansson said.
"The efficiency programs in the hygiene and forest products operations are continuing according to plan.
"Consolidated net sales for the first quarter of 2013, excluding exchange rate effects and divestments, rose 20% compared with the same period a year ago. The increase is mainly attributable to acquisitions and higher volumes.
"Operating profit excluding exchange rate effects and items affecting comparability rose 25%. The corresponding profit for Personal Care and Tissue rose 27% and 40%, respectively, while profit for Forest Products decreased by 22%. Forest Products includes positive earning effects of SEK 121m attributable to land swaps and negative exchange rate effects of approximately SEK 110m. Profit before tax, excluding exchange rate effects and items affecting comparability, rose 34%.
"The Groupís operating cash flow improved by 5%, to approximately SEK 1.9bn.
"In connection with SCAís acquisition of Georgia-Pacificís European tissue operation in 2012, the European Commission set conditions for certain divestments of consumer tissue businesses. The European Commission has now approved all of SCAís divestments. The businesses in question represent total sales of approximately EUR 200m, and the combined purchase consideration for the divestments is approximately EUR 100m.
"The divestment of the Austrian publication paper mill in Laakirchen has been completed, Johansson concluded."