1 JANUARY–31 MARCH 2011 (compared with same period a year ago)
- Net sales decreased by 3% (increased by 6% excluding exchange rate effects and divestments) to SEK 25,393m (26,199)
- Profit before tax, excluding restructuring costs, rose 4% (10% excluding exchange rate effects) to SEK 1,810m (1,748)
- Restructuring costs amounted to SEK 0m (244)
- Net profit for the period, excluding restructuring costs, rose 6% to SEK 1,339m (1,259)
- Earnings per share rose 24% to SEK 1.89 (1.53)
- Cash flow from current operations was SEK 353m (1,148)
(Table included in attached pdf)
Net sales for the first quarter of 2011, excluding effects of exchange rate movements and divestments, rose 6% as a result of higher prices and volumes compared with the same quarter a year ago.
Operating profit for the first quarter of 2011, excluding restructuring costs and exchange rate effects, rose 10% compared with the same period a year ago. Higher prices and volumes along with cost-cutting measures compensated for SEK 1.3bn in higher raw material costs. Net profit for the period, excluding restructuring costs, rose 6% (12% excluding exchange rate effects), and earnings per share rose 24%.
Cash flow from current operations for the first quarter of 2011 was SEK 353m (1,148). The decrease is mainly attributable to a higher level of working capital and increase in current capital expenditures.
During the first quarter of 2011, operating profit for Personal Care and Tissue decreased compared with the same quarter a year ago. The decrease is mainly attributable to higher raw material costs. The sharp improvement in operating profit for Packaging is attributable to higher prices and volumes along with cost savings, which compensated for roughly SEK 500m in higher raw material costs. Operating profit for Forest Products improved as a result of improved earnings for the publication paper business.
Operating profit for the first quarter of 2011, excluding exchange rate effects, decreased by 16% compared with the fourth quarter of 2010. The lower profit is the result of a seasonal drop in volumes and higher raw material and energy costs.
Price increases, new product launches and activities to lower costs are being carried out to offset the significant increase in raw material costs. The effects of this will have an impact during the second half of the year. In Packaging, prices for corrugated board are expected to rise during the second quarter.
In Tissue, decisions have been made to invest in increased capacity in Russia and Germany in order to further strengthen our market position and profitability. The investments in these two plants amount to approximately SEK 2.3bn and production is scheduled to commence in 2013.
Favourable demand is expected in all of SCA's business areas in 2011.
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.