Jul 28, 2006. /Lesprom Network/.  Swedish pulp-and-paper group Svenska Cellulosa AB (SCA) said its net profit rose to SEK 2.5 billion  ($339.9 million) in the first half of 2006 from SEK 1.7 billion ($227.7 million) a year earlier. 

 

In billion crowns

 

2Q 2006

2Q 2005

1H 2006

1H 2005

Net sales   

25.294

25.400

50.694

46.504 

Operating profit

2.113

1.955

4.068

2.956 

Pre-tax profit

1.708

1.569

3.277

2.255 

Net profit

1.321

1.169

2.490

1.668 

Earnings per share (crowns)

5.62

4.96

10.58

7.09 

 

The personal care business area reported a 15% annual sales rise in the first half of 2006, while the tissue business sales increased by 7.0%. Net sales of the packaging business rose 6.0% in the reporting period, while forest products grew by 15%. 

 

SCA employed some 50 500 at the end of the second quarter of 2006, down from some 52 000 a year earlier. 

 

The group said its efficiency improvement programme, announced in August 2005, is proceeding according to plan. It is expected to give full effect from 2008 with annual savings of SEK 1.6 billion  ($211.6 million). So far, SCA has made savings of SEK 280 million ($38.2 million) with additional savings of SEK 30 million ($4.1 million) in the second quarter of 2006.