SCA First Quarter Operating Profit Up On Acquisition, Volumes

April 29, 2014 - SCA (Svenska Cellulosa AB) reported financial results for its first quarter Jan. 1 - March 31, 2014 (compared with same period a year ago)

  • Net sales rose 4% (9% excluding divestments) to SEK 24,234m (23,332)
  • Operating profit, excluding items affecting comparability, rose 14% (18% excluding exchange rate effects and divestments) to SEK 2,630m (2,315)
  • Profit before tax, excluding items affecting comparability, rose 15% (19% excluding exchange rate effects and divestments) to SEK 2,342m (2,036)
  • Items affecting comparability totaled SEK -247m (-418)
  • Earnings per share were SEK 2.12 (1.59)
  • Cash flow from current operations was SEK 667m (1,385)
  • Recalculations have been made for previous periods on account of new and amended IFRSs and rules governing consolidated financial statements and joint arrangements (see note 6)\

SCA's CEO Jan Johansson made the following comments:

"Operating profit, excluding items affecting comparability, exchange rate effects and divestments, rose 18%." – Jan Johansson, Prssident and CEO, SCA.

"The comparison of the first quarter of 2014 with the corresponding period previous year was affected by the divestments of Laakirchen and some Georgia-Pacific units and the acquisition of the majority shareholding in the Chinese company Vinda.

The efficiency programs in the hygiene and forest products operations are continuing according to plan.

Consolidated net sales for the first quarter of 2014, excluding divestments, rose 9% compared with the same period a year ago. The increase is related to the acquisition of the majority shareholding in the Chinese company Vinda, higher volumes and higher prices.

In emerging markets, growth, excluding exchange rate effects, remains favorable. The harsh winter in North America had a negative impact on demand and earnings for AFH (Away From Home) tissue.

Operating profit, excluding items affecting comparability, exchange rate effects and divestments, rose 18%. The acquisition in China, cost savings, higher volumes and higher prices contributed to earnings growth.

Operating profit for Personal Care, excluding items affecting comparability and exchange rate, effects decreased by 6% as a result of higher raw material costs, investments in increased marketing activities and negative transaction exchange rate effects associated with weakened currencies in emerging markets.

Operating profit for Tissue, excluding items affecting comparability, exchange rate effects and divestments, rose 14% as a result of the acquisition in China, higher volumes, higher prices, cost savings and lower raw material and energy costs.

Operating profit for Forest Products, excluding items affecting comparability and the divestment, rose 140% as a result of higher prices, higher volumes, cost savings and lower energy costs.

Profit before tax excluding items affecting comparability, exchange rate effects and divestments rose 19%.

SCA is a leading global hygiene and forest products company that develops and produces sustainable personal care, tissue and forest products. To learn more, please visit: www.sca.com.

SOURCE: SCA (Svenska Cellulosa AB)