Interim report Q2 2010

1 JANUARY–30 JUNE 2010 (compared with corresponding period a year ago)

• Net sales decreased by 3% (excluding exchange rate effects, net sales increased by 4%) to SEK 54,374m (56,242)
• Profit before tax, excluding restructuring costs, rose 12% (16% excluding exchange rate effects) to SEK 3,944m (3,525)         
• Restructuring costs amounted to SEK 451m (439)
• Profit for the period, excluding restructuring costs, rose 10% to SEK 2,860m (2,608)
• Earnings per share were SEK 3.57 (3.24)
• Cash flow from current operations was SEK 2,816m (4,687)

(Table included in attached pdf)

CEO'S COMMENTS

Net sales during the second quarter of 2010, excluding the effect of exchange rate movements, rose 6% compared with the same period a year ago. Operating profit excluding restructuring costs rose 3% (6% excluding exchange rate effects) to SEK 2,440m. Profit before tax, excluding restructuring costs, rose 9% (12% excluding exchange rate effects). 

Compared with the first quarter of 2010, profit before tax rose 26%.  

Cash flow from current operations for the first half of the year was SEK 2,816m (4,687). The decrease is mainly attributable to higher inventory values resulting from higher raw material prices. 

For Personal Care, operating profit was down 8% during the second quarter (4% excluding exchange rate effects) compared with the same period a year ago, mainly due to increased market activity and higher raw material costs, while volume increases for incontinence and feminine care products made a positive contribution. Operating profit for Tissue decreased by 22% (19% excluding exchange rate effects), mainly due to higher raw material costs. The second quarter ended on a strong note, with lower costs for production and distribution, and higher volumes for AFH tissue, which had a positive effect on the operating margin.  

For Packaging, operating profit increased to SEK 306m (11) during the second quarter. Higher prices and volumes along with savings from the restructuring programme led to the earnings improvement. The operating margin improved during the second quarter over the first quarter. Operating profit for Forest Products rose 8% as a result of improved profitability for pulp, timber and solid-wood products. 

SCA's hygiene products continue to perform well, with favourable growth for incontinence products and AFH tissue. In Tissue, price increases are being carried out, which will have a gradual effect during the second half of 2010. In Packaging, demand is increasing and prices are rising gradually. Demand for publication papers in Europe has improved, but from a low level.

For further information, please contact:
Lennart Persson, Executive Vice President and CFO, +46 8 788 51 22
Johan Karlsson, Vice President Investor Relations, +46 8 788 51 30
Pär Altan, Vice President Media Relations, +46 8 788 52 37 

Note
SCA discloses the information provided herein pursuant to the Securities Markets Act. This report has been prepared in both Swedish and English versions. In case of variations in the content between the two versions, the Swedish version shall take precedence.