1Q operating profit excluding items affecting comparability rose 20% (25% excluding exchange rate effects) to SEK 2,205 million ($334 million). Earnings improved as a result of acquisition in Europe, higher volumes, lower raw material costs and cost-savings. The corresponding profit for Personal Care and Tissue rose 21% and 34%, respectively (27% and 40% respectively excluding exchange rate effects). Profit for Forest Products fell 22%, mainly due to lower prices and negative exchange rate effects.
Items affecting comparability amounted to SEK -418 million ($63.3 billion) in 1Q 2013 and consist of restructuring costs for the previously announced efficiency programs, transaction costs for previous years’ acquisitions and divestments, and integration costs for the Georgia-Pacific acquisition.
Net profit for the 1Q excluding items affecting comparability rose 6% (11% excluding exchange rate effects) to SEK 1,441 million ($218 billion). Earnings per share including items affecting comparability were SEK 1.59 ($0.24).
Jan Johansson, CEO and President of SCA, said: “The hygiene operations are showing favorable sales growth and improved earnings. The lower earnings for Forest Products are mainly attributable to negative exchange rate effects and lower prices for publication papers.
The efficiency programs in the hygiene and forest products operations are continuing according to plan.
“Consolidated net sales for the 1Q 2013, excluding exchange rate effects and divestments, rose 20% compared with the same period a year ago. The increase is mainly attributable to acquisitions and higher volumes.
The Group’s operating cash flow improved by 5%, to approximately SEK 1.9 billion ($288 million).
“In connection with SCA’s acquisition of Georgia-Pacific’s European tissue operation 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 total sales of approximately Euro 200 million, and the combined purchase consideration for the divestments is approximately Euro 100 million.”
SCA is a leading global hygiene and forest products company. The Group develops and produces sustainable personal care, tissue and forest products.
