SCA has published its first quarter report for 2012. Operating profit, excluding items affecting comparability, rose 4%. Here are some key figures from the report.
• Net sales increased by 1% (4% excluding exchange rate effects and divestments) to SEK 19,490m (19,231)
• Operating profit excluding items affecting comparability rose 4% (7% excluding divestments)to SEK 1,834m (1,767)
• Items affecting comparability, restructuring costs, etc., amounted to SEK -150m (0)
• Earnings per share amounted to SEK 1.73 (1.89)
• Cash flow from current operations was SEK 1,301m (446)
SCA’s CEO comments on the report.
“The processes of completing the acquisition of Georgia-Pacific's European tissue operations and the sale of the packaging operations, excluding the two kraftliner mills in Sweden, are proceeding according to plan. The hygiene operations are performing well, with continued growth, higher market shares and significantly improved earnings compared to the previous year. Forest Products was negatively affected by higher raw material and energy costs coupled with a weak market for publication papers, solid-wood products and kraftliner. We also experienced the usual seasonal effect during the first quarter compared with the fourth quarter. In addition, operations in Australia/New Zealand were deconsolidated from the start of the year.”
“In early 2012 SCA announced two acquisitions that will strengthen the company’s position in the important hygiene products market in Asia. During the first quarter SCA reached an agreement with the Taiwan-based hygiene products company Everbeauty, a leading Asian supplier of personal care products. The acquisition creates favourable growth opportunities in a strategic growth market and gives SCA a leading position in incontinence care products in Asia, excluding Japan. The acquisition also strengthens SCA’s position in baby diapers along with its geographic presence in Asia. In early April SCA decided to increase its ownership in the Chinese company Vinda, the third largest player in China’s tissue market.”
