SCA's Q2 net income increases to 1.15B Swedish kronor from 1.08B kronor in year-ago period, despite 34% drop in profit for forest products; net sales up 9.3% to 22.15B kronor, mainly attributable to acquisitions and higher volumes in hygiene operations

STOCKHOLM , July 18, 2013 (press release) – JANUARY 1–JUNE 30, 2013 (compared with same period a year ago)

  • Net sales rose 12% (19% excluding exchange rate effects and divestments) to SEK 44,531m (39,763)
  • Operating profit excluding items affecting comparability rose 11% (16% excluding exchange rate effects) to SEK 4,361m (3,939)
  • Profit before tax, excluding items affecting comparability, rose 18% (22% excluding exchange rate effects) to SEK 3,884m (3,292)
  • Items affecting comparability amounted to SEK -791m (-410)
  • Earnings per share were SEK 3.22 (3.58)
  • Cash flow from current operations was SEK 1,997m (3,067)

CEO’S COMMENTS
The hygiene operations are showing higher sales and earnings. The decrease in earnings for Forest Products is mainly attributable to lower prices and negative exchange rate effects as a result of the stronger Swedish currency.

The efficiency programs in the hygiene and forest products operations are continuing according to plan.

Consolidated net sales for the first half of 2013, excluding exchange rate effects and divestments, rose 19% compared with the same period a year ago. The increase is mainly attributable to acquisitions and higher volumes in the hygiene operations. Operating profit excluding items affecting comparability and exchange rate effects rose 16%. Acquisitions, higher volumes, lower raw material costs and cost savings contributed to the earnings improvement. The corresponding profit for Personal Care and Tissue rose 17% and 37%, respectively, while profit for Forest Products decreased by 34%. Profit before tax, excluding items affecting comparability and exchange rate effects, rose 22%.

Consolidated net sales for the second quarter of 2013, excluding exchange rate effects and divestments, rose 18% compared with the same period a year ago. The increase is mainly attributable to acquisitions and higher volumes in the hygiene operations. Operating profit excluding items affecting comparability and exchange rate effects rose 5%. Acquisitions, higher volumes and cost savings contributed to the earnings improvement. The corresponding profit for Personal Care and Tissue rose 3% and 33%, respectively, while profit for Forest Products decreased by 42%. Profit before tax, excluding items affecting comparability and exchange rate effects, rose 11%.

In connection with SCA’s acquisition of Georgia-Pacific’s European tissue operations in 2012, the European Commission set conditions for certain divestments of consumer tissue businesses. The European Commission has now approved all of SCA’s divestments. The businesses in question represent combined sales of approximately EUR 200m.

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IndustryIntel editor's note: In an omitted table, SCA reports second-quarter 2013 net income of 1.15 billion Swedish kronor and net sales of 22.15 billion kronor, compared with second-quarter 2012 net income of 1.08 billion kronor and net sales of 20.27 billion kronor.

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