1 JANUARY–31 MARCH 2010 (compared with corresponding period a year ago)
• Net sales decreased by 6% (excluding exchange rate effects, net sales increased by 1%) to SEK 26,722m (28,327)
• Profit before tax excluding restructuring costs rose 16% (excluding exchange rate effects, by 20%) to SEK 1,748m (1,511)
• Restructuring costs in Packaging amounted to SEK 244m (0)
• Profit for the period, excluding restructuring costs, increased to SEK 1,259m (1,119)
• Earnings per share were SEK 1.53 (1.58)
• Cash flow from current operations was SEK 1,148m (1,640)
(Table included in attached pdf)
Profit before tax, excluding restructuring costs, rose 16% (excluding exchange rate effects, 20%) to SEK 1,748m. Operating profit excluding restructuring costs decreased by 5% (excluding exchange rate effects, by 1%) to SEK 2,027m. Cash flow from current operations was SEK 1,148m. SCA's net debt decreased by SEK 9,129m, to SEK 38,713m. The debt repayment capacity rose to 35% (25%). Excluding the effect of exchange rate movements, net sales rose 1%.
For Personal Care, operating profit improved by 5% (excluding exchange rate effects, by 9%), mainly due to higher volumes and lower raw material costs. Operating profit for Tissue decreased by 18% (excluding exchange rate effects, by 13%) compared with the same period a year ago, mainly due to higher raw material costs and lower prices.
For Packaging, operating profit increased to SEK 192m (81). The improvement is mainly attributable to savings achieved from the restructuring programme, better capacity utilisation and higher prices. Costs for the restructuring programme have now been booked, and of the projected annual savings of SEK 1,070m, 70% have been achieved on an annual basis. Operating profit for Forest Products decreased by 16%. Improved earnings for pulp and solid-wood products failed to compensate for the lower earnings for publication papers, mainly on account of lower prices.
Sharply higher raw material costs for pulp and recycled paper have an adverse impact on earnings. To address this, SCA is now carrying out price increases along with cost-cutting activities. The effects of these will be felt gradually during the second half of the year.
Demand for SCA's hygiene products remains stable, with favourable growth in prioritised emerging markets. In Packaging, market demand is expected to rise. The publication papers market in Europe is showing signs of a slight recovery, but from a low level. In solid-wood products, the market balance remains favourable.