SCA has published its Year-end report Q4 2012. Operating profit excluding items affecting comparability rose 12 per cent to SEK 8,646m (7,738). Net sales rose 5 per cent to SEK 85,408m (81,337).
SCA’s CEO comments on the report:
”SCA completed two major company deals in 2012 – the acquisition of Georgia-Pacific's European tissue operations and the divestment of our packaging operations, excluding the two kraftliner mills in Sweden. The Georgia-Pacific acquisition boosts our competitive strength in the European tissue market and complements our market positions. The acquisition will lead to annual cost synergies of EUR 125m, with full effect from 2016. The sale of SCA's packaging business reduces our cyclical exposure and gives us greater financial opportunities to grow our hygiene business. In 2012 SCA acquired Everbeauty, a leading Asian personal care company, which strengthens our position in Asia – especially in China.
In Forest Products, in 2012 SCA divested its 50% shareholding in Aylesford Newsprint in the UK. During the year, SCA also signed an agreement to sell the Austrian publication paper mill in Laakirchen. We are thereby focusing on our Swedish operations, which are well integrated with the nearby forest holdings.
In our hygiene operations, during the year we established a new organization and launched an extensive cost-cutting program that will lead to annual cost savings of EUR 300m, with full effect from 2015. We also introduced an efficiency program in our Forest Products operations, which will lead to annual savings of SEK 1,300m, with full effect from 2015.
Consolidated net sales for 2012, excluding exchange rate effects and divestments, rose 11% compared with the same period a year ago. Operating profit excluding exchange rate effects, divestments and items affecting comparability rose 17%. The corresponding profit for Personal Care and Tissue rose 28% and 50%, respectively, while profit for Forest Products fell by 46%. The Group's operating cash flow improved by slightly more than SEK 2bn, to SEK 9,644m.”
