1 JANUARY–31 DECEMBER 2011 (compared with same period a year ago) including the packaging operations held for sale
In November 2011 and January 2012 SCA announced two major transactions. In November a binding offer was made for Georgia-Pacific’s European tissue operations, and in January 2012 the divestment of SCA’s packaging operations, excluding the two kraftliner mills in Sweden, was announced. Together these two transactions will entail major synergies, lower sensitivity to economic swings and gradually higher earnings per share.
During the financial year SCA carried out important efficiency improvement measures, stepped up the pace in its launch of new products and achieved growth in both mature and emerging markets. Sales increased in all business areas, and net sales for 2011, excluding exchange rate effects and divestments, rose 4% compared with a year earlier. Growth in the hygiene operations remained good in emerging markets, where Personal Care and Tissue grew sales by 13% and 10%, respectively. To take advantage of growth opportunities in the hygiene operations and strengthen our positions in emerging markets, during the year we carried out acquisitions and investments in Brazil, Turkey and Russia, among other places.
Operating profit excluding items affecting comparability and exchange rate effects was level with the preceding year. Price increases and cost savings carried out in combination with increased volumes compensated for SEK 3.2bn in higher raw material costs and higher energy and distribution costs. Profit for the year excluding items affecting comparability and exchange rate effects decreased by 2% compared with the preceding year.
Net sales for the fourth quarter of 2011 excluding exchange rate effects and divestments increased by 1%, and operating profit excluding items affecting comparability and exchange rate effects increased by 1% compared with the fourth quarter a year ago.
Compared with the third quarter, operating profit for the fourth quarter excluding items affecting comparability rose 4%, while net sales were largely unchanged. The operating margin for the hygiene operations continued to grow.
Continued good demand is expected for SCA’s hygiene operations.
Web cast, flash: _http://www.sca.com/WebcastQ42011flash
Web cast, wm: http://www.sca.com/WebcastQ42011wm
Other Q4 material; http://www.sca.com/Q42011en
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. Submitted for publication on 26 January 2012, at 12.00 CET.