1 JANUARY - 31 DECEMBER 2008 (compared with corresponding period a year ago)

1 JANUARY - 31 DECEMBER 2008 (compared with corresponding period a year ago)

• Net sales rose 4% to SEK 110,449m (105,913)
• Profit before tax was SEK 6,237m (8,237)
• Profit for the period was SEK 5,598m (7,161)
• Earnings per share were SEK 7.94 (10.16)
• Operating cash flow was SEK 3,810m (4,508)
• The Board of Directors proposes a dividend of SEK 3.50 per share (4.40)

[Table included in attached PDF)

CEO'S COMMENTS
Net sales rose 4% compared with the same period a year ago. Operating profit for
the fourth quarter amounted to SEK 1,838m (preceding year 2,591 excluding items
affecting comparability), and was SEK 8,554m for the full year (preceding year
9,847 excluding items affecting comparability). Profit before tax was SEK 1,150m
(excluding items affecting comparability 2,042) for the fourth quarter and SEK
6,237m (excluding items affecting comparability 7,937) for the full year. 

SCA's hygiene operations are showing favourable growth compared with a year ago
and are showing considerable resilience to the economic downturn. However, in
the packaging operations in particular, earnings have fallen, and the negative
trend became accentuated at the end of the fourth quarter. Our Forest Products
business posted a poorer result than a year ago, mainly due to weak development
for solid-wood products, although earnings for the unit improved somewhat during
the fourth quarter compared with the third quarter.

In the hygiene operations, Tissue showed a strong improvement in sales and
operating profit compared with a year ago, driven by acquisitions and price
increases. SCA's positions in consumer tissue have developed well. The
Away-From-Home segment (AFH) remains stable. Development for Personal Care is
favourable, with growth of 6%. Our most important segment, incontinence care
with the world-leading Tena-brand, grew 7% during the year and 11% during the
fourth quarter. Margins came under pressure during the year due to the
technological shift in baby diaper production and higher raw material costs. 

In our packaging operations, we increasingly saw the effects of the recession
during the latter part of the fourth quarter. The industry is struggling with a
deteriorating demand scenario and high producer inventories. As a result,
pressure is rising on prices for containerboard (liner) as well as corrugated
board. Earnings deteriorated significantly compared with the preceding year and
quarter. To address these problems, SCA streamlined its production and cut
production of liner during the year by a total of 149,000 tonnes, including
92,000 tonnes during the fourth quarter. 

Our overriding priorities in 2009 will be to improve cash flow in part by
cutting back on capital expenditures and in part by cutting costs and reducing
working capital. 

For 2009 we expect our hygiene operations to show continued favourable
development. If the negative demand balance continues in our packaging
operations, we see the risk of an earnings decline. The forest products business
is expected to show stable performance in 2009.

Against the backdrop of the above and of the major uncertainty about the economy
and within the financial systems, combined with lower earnings, the Board
proposes a dividend of SEK 3.50 per share for 2008. 


Jan Johansson, President and CEO


For further information, please contact:

Bodil Eriksson, Corporate Communications, +46 8 788 52 34 
Johan Karlsson, Investor Relations, +46 8 788 51 30
Pär Altan, Media Relations, +46 8 788 52 37


Note
SCA discloses the information provided herein pursuant to the Securities Markets
Act. This report has been prepared in both Swedish and English. In case of
variation in the content of the two versions, the Swedish version shall take
precedence. The report has not been reviewed by the company's auditors.