1 JANUARY–30 SEPTEMBER 2010 (compared with corresponding period a year ago)
- Net sales decreased by 2% (increased by 4% excluding exchange rate effects) to SEK 81,578m (83,350)
- Profit before tax, excluding restructuring costs, rose 9% (12% excluding exchange rate effects) to SEK 6,218m (5,724)
- Restructuring costs amounted to SEK 931m (826)
- Profit for the period, excluding restructuring costs, rose 10% to SEK 4,601m (4,179)
- Earnings per share were SEK 5.53 (5.06)
- Cash flow from current operations was SEK 5,010m (8,946)
(Table included in attached pdf)
Strong improvement in profitability for Packaging
Net sales for the third quarter of 2010, excluding effects of divestments and exchange rate movements, rose 8% compared with the same period a year ago, as a result of higher prices and volumes. Operating profit excluding restructuring costs and currency effects rose 2%. Price increases carried out and cost-cutting measures, combined with higher volumes, have compensated for sharply higher raw material costs.
Cash flow from current operations for the first nine months of 2010 was SEK 5,010m (8,946). The decrease is mainly attributable to higher inventory values resulting from higher raw material prices.
In the third quarter 2010, operating profit for Personal Care and Tissue decreased compared with the same period a year ago, mainly due to higher raw material costs. The increase in operating profit for Packaging is mainly attributable to higher prices and volumes, and savings from the restructuring programme. Operating profit for Forest Products rose as a result of higher prices and volumes for pulp, timber and solid-wood products.
Operating profit for Tissue was down 5% during the third quarter of 2010 from the preceding quarter. Price increases carried out compensated for continued higher raw material costs. Seasonally lower volumes resulted in slightly lower profit.
Continued favourable demand in all of SCA's business areas is expected. However, in line with the normal seasonal pattern, the fourth quarter is weaker for AFH tissue in North America and for Packaging. Higher prices in Packaging along with the full effect of previously carried out price increases for Tissue are expected during the fourth quarter.
For further information, please contact:
Camilla Weiner, Head of Corporate Communications, +46 8 788 52 34
Johan Karlsson, Vice President Investor Relations, +46 8 788 51 30
Pär Altan, Vice President Media Relations, +46 8 788 52 37
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 govern. This report has not been reviewed by the company's auditors.