STOCKHOLM, Sweden, April 11, 2002 (PRIMEZONE) -- In addition to an historical review and a report on the Group's growth plans for the next five years, the departing President and CEO, Sverker Martin-Lof, provided information on the current market situation. With regard to hygiene products, it was stated that demand on the European market continues to be strong while, at the same time, raw material costs have reached a low point. Demand for corrugated board in Europe has stabilized, despite continued cyclical weakness in the industrial business climate. Nevertheless, some downward pressure on prices is being exerted due to overcapacity with regard to containerboard. The market remains weak for LWC paper, which has led to reduced deliveries and increased price competition. Even in the case of other publication paper grades, there has been a reduced pace of delivery and distinct price competition. The price decline for newsprint was 8% during the early months of 2002.
The stabilization and then recovery in demand for SCA's products in North America during the fourth quarter of 2001 has steadily continued during the first quarter of 2002.
SCA's Internet website (www.sca.com) offers the opportunity to view a taped version of the CEO's address to the Annual General Meeting. It becomes available at on April 12.
Election of new Chairman of the Board and changes in the Board's membership
The SCA board of directors has in connection to the Annual General Meeting elected Sverker Martin-Lof new Chairman. He succeeds Bo Rydin, who leaves the Board and has been appointed Honorary Chairman.
SCA's newly appointed President and CEO, Jan Astrom, was elected to the Board of Directors. As well as Jan Astrom and the Company's employee representatives, the Board will include Erik Engstrom, Soren Gyll, Tom Hedelius, Sverker Martin-Lof, Anders Nyren and Lars Ramqvist.
Dividend
The Annual General Meeting approved the dividend for the fiscal year 2001 of SEK 8.75 (7.75) per share. Accordingly, the dividend has increased on average 12% annually during the past five years. The record date for dividend rights is 16 April 2002, and payment of dividend by the Swedish Securities Register Center is expected to be made on 19 April 2002.
Purchase and transfer of own shares
The Annual General Meeting resolved to authorize the Board during the period until the next Annual General Meeting, on one or more occasions, to decide on the purchase of the company's own Class A and/or Class B shares on the stock exchange and on the transfer of the company's shares so acquired on the stock market or in some other manner, including waiving the preferential rights of the shareholders and that it shall be possible to effect non-cash transfers.
Acquisition of up to 11 million shares in the company shall be permissible, corresponding to nearly 5% of the number of shares issued, at a price per share within the registered price interval on the stock exchange at the time of purchase. All own shares so acquired may be transferred at a price not lower than within the registered price interval on the stock exchange at the time of transfer. Transfers in any other manner shall be carried out at a market price determined by the Board.
The purpose of the proposal is to provide the Board the possibility to use own shares as payment in company acquisitions and to secure the costs in the programs.
Support for MBA program at the Stockholm School of Economics
Jointly with a number of other Swedish companies and institutions, SCA intends to support the establishment of a MBA program at the Stockholm School of Economics. Collective funding from the business community and various institutions is estimated at SEK 350 M. Bo Rydin's Foundation for Scientific Research intends to donate SEK 25 M to the project, and SCA has decided to contribute SEK 15 M to the Foundation as support for its commitment. The current assets of the foundation are about SEK 200 M. A MBA program in Sweden would further improve the Group's recruitment opportunities, and also provide SCA's own engineers and economists with the possibility of obtaining high-quality leadership training in Sweden.
The Stockholm School of Economics has proposed that a professorial chair within the new educational program should bear the names of Bo Rydin and SCA.
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