SCA's Q1 net profit rises to 1.49B Swedish kronor from 1.12B kronor in year-ago period, with comparison affected by divestments of Laakirchen and some GP units plus acquisition of major stake in Vinda; Q1 net sales up 3.9% year-over-year, to 24.23B kronor

STOCKHOLM , April 29, 2014 (press release) –

JANUARY 1–MARCH 31, 2014 (compared with same period a year ago)

  • Net sales rose 4% (9% excluding divestments) to SEK 24,234m (23,332)
  • Operating profit, excluding items affecting comparability, rose 14% (18% excluding exchange rate effects and divestments) to SEK 2,630m (2,315)
  • Profit before tax, excluding items affecting comparability, rose 15% (19% excluding exchange rate effects and divestments) to SEK 2,342m (2,036)
  • Items affecting comparability totaled SEK -247m (-418)
  • Earnings per share were SEK 2.12 (1.59)
  • Cash flow from current operations was SEK 667m (1,385)
  • Recalculations have been made for previous periods on account of new and amended IFRSs and rules governing consolidated financial statements and joint arrangements (see note 6)

(Table included in attached pdf)

CEO’S COMMENTS

The comparison of the first quarter of 2014 with the corresponding period previous year was affected by the divestments of Laakirchen and some Georgia-Pacific units and the acquisition of the majority shareholding in the Chinese company Vinda.

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

Consolidated net sales for the first quarter of 2014, excluding divestments, rose 9% compared with the same period a year ago. The increase is related to the acquisition of the majority shareholding in the Chinese company Vinda, higher volumes and higher prices.

In emerging markets, growth, excluding exchange rate effects, remains favorable. The harsh winter in North America had a negative impact on demand and earnings for AfH tissue.

Operating profit, excluding items affecting comparability, exchange rate effects and divestments, rose 18%. The acquisition in China, cost savings, higher volumes and higher prices contributed to earnings growth. Operating profit for Personal Care, excluding items affecting comparability and exchange rate, effects decreased by 6% as a result of higher raw material costs, investments in increased marketing activities and negative transaction exchange rate effects associated with weakened currencies in emerging markets. Operating profit for Tissue, excluding items affecting comparability, exchange rate effects and divestments, rose 14% as a result of the acquisition in China, higher volumes, higher prices, cost savings and lower raw material and energy costs. Operating profit for Forest Products, excluding items affecting comparability and the divestment, rose 140% as a result of higher prices, higher volumes, cost savings and lower energy costs.

Profit before tax excluding items affecting comparability, exchange rate effects and divestments rose 19%.

SCA discloses the information provided herein pursuant to 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. Submitted for publication on April 29, 2014, at 8.00 CET. This report has not been reviewed by the company’s auditors.

Industry Intelligence Inc. editor's note: In an omitted table viewed at the link above to tables attached, 
Svenska Cellulosa Aktiebolaget reported first-quarter net profit attributable to owners of the parent of 1.492 billion Swedish kronor compared to 1.119 billion kronor a year ago.


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