Interim Report Q3 2010

Interim Report Q3 2010

1 JANUARY-30 SEPTEMBER 2010 (compared with corresponding period a year
ago) 

  · Net sales decreased by 2% (increased by 4% excluding exchange rate
effects) to SEK 81,578m (83,350)
  · Profit before tax, excluding restructuring costs, rose 9% (12%
excluding exchange rate effects) to SEK 6,218m (5,724)         
  · Restructuring costs amounted to SEK 931m (826)
  · Profit for the period, excluding restructuring costs, rose 10% to
SEK 4,601m (4,179)
  · Earnings per share were SEK 5.53 (5.06)
  · Cash flow from current operations was SEK 5,010m (8,946)

(Table included in attached pdf)

CEO'S COMMENTS

Strong improvement in profitability for Packaging 

Net sales for the third quarter of 2010, excluding effects of
divestments and exchange rate movements, rose 8% compared with the same
period a year ago, as a result of higher prices and volumes. Operating
profit excluding restructuring costs and currency effects rose 2%. Price
increases carried out and cost-cutting measures, combined with higher
volumes, have compensated for sharply higher raw material costs.  

Cash flow from current operations for the first nine months of 2010 was
SEK 5,010m (8,946). The decrease is mainly attributable to higher
inventory values resulting from higher raw material prices.  

In the third quarter 2010, operating profit for Personal Care and Tissue
decreased compared with the same period a year ago, mainly due to higher
raw material costs. The increase in operating profit for Packaging is
mainly attributable to higher prices and volumes, and savings from the
restructuring programme. Operating profit for Forest Products rose as a
result of higher prices and volumes for pulp, timber and solid-wood
products.  

Operating profit for Tissue was down 5% during the third quarter of 2010
from the preceding quarter. Price increases carried out compensated for
continued higher raw material costs. Seasonally lower volumes resulted
in slightly lower profit.  

Continued favourable demand in all of SCA's business areas is expected.
However, in line with the normal seasonal pattern, the fourth quarter is
weaker for AFH tissue in North America and for Packaging. Higher prices
in Packaging along with the full effect of previously carried out price
increases for Tissue are expected during the fourth quarter.

For further information, please contact:
Camilla Weiner, Head of Corporate Communications, +46 8 788 52 34
Johan Karlsson, Vice President Investor Relations, +46 8 788 51 30
Pär Altan, Vice President 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
versions. In case of variations in the content between the two versions,
the Swedish version shall govern. This report has not been reviewed by
the company's auditors.