JANUARY 1 – DECEMBER 31, 2019
(compared with January 1 – December 31, 2018)
OCTOBER 1 – DECEMBER 31, 2019
(compared with July 1 – June 30, 2019)
COMMENTS ON THE FINANCIAL STATEMENTS
SCA continued to deliver profitable growth in 2019. The forest assets increased in both volume and area. At the same time, the integrated value chain has been further strengthened. The Östrand pulp mill was ramped up to full production and SCA decided to invest some SEK 7.5bn in a new kraftliner machine in Obbola.
Demand and market prices declined successively for all product areas during the year. But despite a weaker market, both operating profit before depreciation and operating cash flow were higher than 2018 due to higher delivery volumes from the expanded pulp mill.
SCA performed a new forest survey in 2019. According to the new survey, SCA’s standing volume in Sweden is estimated at 249 million m3fo as of December 31, 2019, an increase of 11 million m3fo compared with the previous survey from 2012–2013, and which indicated a standing volume of 238 million m3fo at the end of 2019. In addition, SCA owns approximately 3 million m3fo forest in the Baltic states.
At year-end, SCA changed its accounting method for the valuation of the company’s forest assets to base this on market value determined from transactions in areas where SCA owns forest assets. Based on transaction prices, SCA’s forest assets were valued at approximately SEK 70bn at December 31, 2019, compared with the previous carrying amount of approximately SEK 34bn.
Earnings in the fourth quarter of 2019 were lower compared with the preceding quarter and the corresponding quarter in 2018. Maintenance costs and lower market prices had an adverse impact on earnings.
SCA’s wood consumption declined slightly during the quarter on account of maintenance stops at SCA’s pulp and paper mills. Prices for pulpwood and timber remained stable for the quarter.
Consumption of sawn timber remained stable, although a high level of supply led to a fall in selling prices compared with the preceding quarter.
Within Pulp, global delivery levels were good and inventory levels fell. However, average selling prices continued to decrease slightly during the quarter.
Market prices for kraftliner declined during the quarter. However, demand has improved and inventory levels fell for both kraftliner and testliner. For publication paper, demand and market prices declined slightly.
INVITATION TO PRESS CONFERENCE ON INTERIM REPORT FOR THE FOURTH QUARTER OF 2019
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: Thursday, January 30, 2020 at 10:00 a.m.
Venue: Sankta Clara, Kapital 8 Klara Strand, Klarabergsviadukten 90 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 928000|
|US:||+1 631 510 7495|
Specify “SCA” or the conference ID: 1881188.
Sundsvall, January 30, 2020
SVENSKA CELLULOSA AKTIEBOLAGET SCA (publ)
President and CEO
For further information, please contact
Toby Lawton, CFO, +46 (0)60 19 31 09
Andreas Ewertz, Investor Relations Director, +46 (0)60 19 31 97
Björn Lyngfelt, Senior Vice President Communications, +46 (0) 19 34 98
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 January 30, 2020 at 08:00 a.m. CET. The report has not been reviewed by the company’s auditors.
Björn Lyngfelt, Senior Vice President, Communications, +46 (0)60 19 34 98
The core of SCA’s business is the forest, Europe’s largest private forest holding. Around this unique resource, we have built a well-developed value chain based on renewable raw material from our own and others’ forests. We offer paper for packaging and print, pulp, wood products, renewable energy, services for forest owners and efficient transport solutions.
2019 the forest products company SCA had approximately 4,000 employees and sales amounted to approximately SEK 19.6 bn (EUR 1.9 bn). SCA was founded in 1929 and has its headquarters in Sundsvall, Sweden. For more information, visit www.sca.com