Interim report 1 January-30 September 2002

Interim report 1 January-30 September 2002 02:3(2) 02:2 02:1 0209(2) 0109 Earnings per share, SEK(1) 6.27 6.05 5.89 18.21 17.79 Cash flow from current 11.74 9.36 6.83 27.93 33.16 operations per share, SEK(1) Net sales, SEK M 22,247 22,355 21,015 65,617 60,871 Earnings after financial 2,032 2,026 1,967 6,025 5,978 items, SEK M Net earnings, SEK M 1,456 1,404 1,365 4,225 4,135 (1) Adjusted historically to reflect new issue of 1.8 million shares in 2001 for stock option program (see page 10). (2) Including the nonrecurring effect of the sale of Zewathener, SEK 88 M. Compared with first nine months of 2001 Earnings per share rose 2%. Operating profit for Hygiene Products increased 28%, while operating profit for Packaging and Forest Products declined 9% and 35%, respectively. Operating margin rose for Hygiene Products. Compared with second quarter of 2002 Earnings per share rose 4%. Operating profit for Packaging improved 20%, Hygiene Products' operating profit was on level with the preceding quarter while operating profit for Forest Products was down 17%. Operating margin rose for Packaging and Hygiene Products. Nominating Committee · Nominating committee appointed, see page 8. NET SALES AND EARNINGS Earnings per share increased 2% compared with the year-earlier period and amounted to SEK 18.21 (17.79). Net earnings thus amounted to SEK 4,225 M (4,135). Consolidated net sales amounted to SEK 65,617 M (60,871), an increase of 8% compared with the year-earlier period. Of this increase, 9% are attributable to acquired companies, while higher volumes accounted for 3%. Lower prices reduced net sales by 4%. Currency movements had only a marginal effect on consolidated net sales. Group operating profit amounted to SEK 6,783 M (7,040), and was thus 4% lower than operating profit a year earlier. Operating profit for Hygiene Products amounted to SEK 4,130 M (3,233), an increase of 28%. Operating profit for Packaging declined 9% to SEK 2,279 M (2,509), while the operating profit of Forest Products amounted to SEK 1,426 M (2,200), down 35%. Currency movements had a positive impact of 5% on operating profit. Operating margin for the Group was 10.3% (11.6). The operating margin for Hygiene Products rose to 12% (11) while it declined to 10% (11) for Packaging and to 14% (22) for Forest Products. Financial items amounted to an expense of SEK 758 M (expense: 1,062). Despite higher average net debt as a result of corporate acquisitions, a significantly lower interest rate provided an improvement of SEK 304 M in financial items. Group earnings after financial items amounted to SEK 6,025 M (5,978), and thus were marginally better than in the year- earlier period. Return on shareholders' equity was 12% (14), and return on capital employed was 13% (14). Comparison with the second quarter of 2002 Consolidated earnings per share increased 4% compared with the preceding quarter and amounted to SEK 6.27 (6.05). The operating profit for Packaging rose 20%. The operating profit for Hygiene Products was on level with the second quarter, while operating profit for Forest Products declined 17%. Currency movements had a negative impact of 2% on Group operating profit. In hygiene operations, operating profit for institutional products rose as a result of price hikes implemented. In contrast, operating profit for Consumer Products declined somewhat due to the loss of the contribution from the tampon operations ("o.b.") that were divested at mid-year and the lower volumes in the southern European tissue operations during the August vacation period. The operating profit for Packaging operations increased as a result of higher prices as well as a capital gain of SEK 88 M on the sale of Zewathener. Forest Products' lower operating profit was due to lower volumes and prices. Group operating margin rose during the third quarter from 10.1 to 10.3%. The increase can be attributed mainly to Packaging, but Hygiene Products also improved its margins. Financial items amounted to an expense of SEK 267 (expense: 238). The dividends received in the second quarter, SEK 64 M, were to an extent offset by lower interest expenses during the third quarter. ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2002/10/30/20021030BIT00570/wkr0001.doc Hela rapporten http://www.waymaker.net/bitonline/2002/10/30/20021030BIT00570/wkr0002.pdf Hela rapporten