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SCA better than expected in third quarter

Oct 25 2011  SCA’s net sales for the third quarter increased by one percent, and the operating profit, excluding restructuring costs, rose 13 percent compared with the second quarter. The result is better than expected by analysts.

SCA’s interim report for the period 1 January – 30 September shows that oerating profit , excluding restructuring costs, decreased by five percent (decreased by one percent excluding exchange rate effects) to 6,697 million Kronor. Net sales decreased by one percent (increased by six percent excluding exchange rate effects and divestments) to 79,001 million Kronor. Earnings per share rose two percent (seven percent excluding exchange rate effects) to 5.66 Kronor.In the third quarter, SCA’s net sales increased by one percent, and the operating profit, excluding restructuring costs, rose 13 percent compared with the second quarter. Earnings improved for all business areas. The higher consolidated profit is mainly attributable to price increases, which compensated for 280 million Kronor in higher raw material costs, according to Jn Johansson, CEO of SCA.An efficiency enhancement program was launched during the third quarter, primarily in the hygiene and packaging operations, worth a total of 1,400 million Kronor, including 900 million Kronor in items affecting cash flow."Uncertainty surrounding developments in the global economy has increased, which makes the future economic outlook difficult to judge. So far we have not seen any negative impact on the demand for our products," Jan Johansson said. /AA

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