Interim report Q3 2008

Interim report Q3 2008

1 JANUARY-30 SEPTEMBER 2008 (compared with same period previous year)
•	Net sales rose 5% to SEK 82,290m (78,105).
•	Profit before tax was SEK 5,087m (5,895). 
•	Net profit for the period was SEK 4,172 (5,023).
•	Earnings per share were SEK 5.92 (7.13).
•	Operating cash flow was SEK 2,178 (3,105).

[Table included in attached PDF)


CEO'S MESSAGE
Net sales rose 5% compared with the same period a year ago, mainly as a result
of acquisitions. SCA's operating profit fell 7% compared with a year ago, to SEK
6,716m (7,256). The hygiene operations reported stronger sales as well as
earnings, while a deterioration was noted for the Packaging and Forest Products
operations.

The global financial crisis has accelerated the recession that we have felt the
effects of since the start of the year. SCA has a secure share of committed
long-term credit facilities to cover its financing needs in the years
immediately ahead.

SCA's hygiene operations, which have become an increasingly important part of
our portfolio, are affected to a lesser extent than the other product areas by
an economic downturn. The Tissue operations have shown a strong improvement in
sales and earnings compared with the preceding year (up 17 and 44%,
respectively), as well as compared with previous quarters this year. We are
working intensively on creating a better product mix in both the Away-From-Home
segment, where the Tork brand is steadily gaining ground, and in the retail
consumer segment, where our efforts have been focused on growing the share of
branded products. 

Sales and operating profit for the Personal Care operations are up compared with
a year ago and the second quarter of this year. The autumn has been
characterised by a higher level of campaign intensity than earlier in the year.
SCA is acting with force in all segments and has maintained or strengthened its
market positions. The important technological shift in the production of baby
diapers, which will strengthen our product offering and our margins once it has
been fully implemented, continues to weigh down earnings. 

At SCA our packaging operations give us an early economic indicator, and
packaging is also the business area in which SCA has seen a significantly weaker
result compared with the previous year and quarter. Demand is lower, and the
large inventories of liner held by producers continue to plague the industry.
SCA is acting by cutting its testliner production by a total of 50,000 tonnes in
October and November. During the autumn, prices for raw materials and energy
have started to fall. Our Forest Products business is also exposed to swings in
the economy to some extent, and the negative trend that we have seen in the
sawmill operations continues. 

We believe that our hygiene operations have continued favourable prospects for
improved sales and earnings, while for our packaging and solid-wood operations,
we expect sales and earnings to remain under pressure.

To further strengthen our competitiveness, we have sharpened our focus on
cost-consciousness and cash flow in the Group. 


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.