JANUARY 1 – SEPTEMBER 30, 2018
(compared with the year-earlier period)
- Net sales increased 11% to SEK 13,829m (12,422). The growth was primarily attributable to Paper and Wood.
- EBITDA increased 46% to SEK 3,758m (2,570). The improvement in EBITDA was mainly related to higher prices.
- EBITDA margin increased to 27.2% (20.7).
- Earnings per share amounted to SEK 3.99 (1.82).
- Operating cash flow, which excludes strategic capital expenditures, increased to SEK 2,007m (1,431). Strategic capital expenditures totaled SEK 1,705m (2,085) and relate to the Östrand investment.
COMMENTS ON THE FINANCIAL STATEMENTS
The market trend in the quarter was stable with unchanged or increased prices in all of SCA’s product areas. Earnings increased compared with the preceding quarter as well as the year-on-year quarter. The improvement in EBITDA came from Paper, Wood and Pulp.
The supply of wood to SCA’s industries was stable. Deliveries of wood increased during the quarter due to the start-up of the expanded pulp mill. The price of timber and pulpwood increased slightly.
The consumption of solid-wood products remained favorable with slightly higher prices during the quarter. Inventories of solid-wood products are generally low.
The pulp market remained strong with high demand in all markets. The price of pulp increased slightly compared with the preceding quarter. The expanded Östrand pulp mill began operating in June and the ramp up has progressed as planned. Work is now focusing on gradually trimming the mill to reach full capacity and the highest quality.
The market trend for kraftliner was stable during the quarter with unchanged prices. For publication papers, capacity reductions among paper producers have created a better balance between supply and demand. Price increases were implemented during the quarter for both uncoated and coated paper.
INVITATION TO PRESS CONFERENCE ON INTERIM REPORT FOR THE THIRD QUARTER OF 2018
Members of the media and analysts are hereby invited to attend a press conference where this interim report will be presented by the President and CEO, Ulf Larsson, and CFO, Toby Lawton.
Time: October 30, 2018 at 10:00 a.m.
Venue: Kreugersalen, Tändstickspalatset, Västra Trädgårdsgatan 15 in Stockholm, Sweden.
The press conference will be webcast live at www.sca.com. It is also possible to participate by telephone by calling:
Sweden: +46 (0)8 5069 2180
UK: +44 (0)2071 928 000
USA: +1 631 510 7495
Specify “SCA” or the conference ID. 6159999.
Sundsvall, October 30, 2018
SVENSKA CELLULOSA AKTIEBOLAGET SCA (publ)
President and CEO
For further information, please contact
Ulf Larsson, President and CEO, +46 (0)60 19 46 46
Toby Lawton, CFO, +46 (0)60 19 31 09
Björn Lyngfelt, SVP, Group Communications, +46 (0)60 19 34 98
Andreas Ewertz, Investor Relations Director, +46 (0)60 19 31 97
This is information that SCA is obliged to make public pursuant to the EU Market Abuse Regulation and 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. The information was submitted for publication, through the agency of the contact person set out below, on October 30, 2018, at 8:00 a.m. CET. The report has been reviewed by the company’s auditors.
Björn Lyngfelt, Senior Vice President, Group Communications, +46 (0)60 19 34 98