STOCKHOLM, Sweden, April 26, 2002 (PRIMEZONE) -- SCA:
02:1 01:1 01:4
Earnings per share, SEK(1) 5.89 5.68 6.26
Cash flow from current 6.83 6.15 15.22
operations per share,
SEK(1)
Net sales, SEK M 21,015 18,522 21,509
Earnings after financial 1,967 1,963 2,112
items, SEK M
Net earnings, SEK M 1,365 1,323 1,452
(1) Adjusted historically to reflect new issue of 1.8 million shares
in 2001 for stock option program (see page 9).
Compared with first quarter of 2001
* Earnings per share improved by 4%. * Cash flow from current operations per share rose 11%. * Operating profit for Hygiene Products operations increased 50%, while corresponding profit for Packaging and Forest Products declined 14% and 30%, respectively. * The operating margin for Hygiene Products improved by 2 percentage points.
Compared with fourth quarter of 2001
* Earnings by Hygiene Products were on level with the fourth quarter, while earnings by Packaging and Forest Products were down 5% and 31%, respectively.
Expansion through acquisitions
Hygiene acquisition in Italy and acquisition of North American packaging operations strengthened the Group's position and will generate an increase of 5% in sales on an annual basis.
NET SALES AND EARNINGS
Earnings per share increased 4% to SEK 5.89 (5.68), corresponding to net earnings totaling SEK 1,365 M (1,323).
CartoInvest, the Italian tissue company, is not included in first quarter net sales and earnings. However, payment for the company was made at the end of March and, accordingly, a preliminary acquisition balance sheet is included in the consolidated balance sheet.
Consolidated net sales amounted to SEK 21,015 M (18,522), an increase of 13% compared with the year-earlier period. Of this increase, 12 percentage points are attributable to acquired companies, while higher volumes and changes in the product mix accounted for 2 percentage points. Lower prices reduced net sales by 5%. Currency movements increased consolidated net sales by 4%.
Group operating profit amounted to SEK 2,220 M (2,213), largely unchanged compared with operating profit in the first quarter of 2001. The operating profit for Hygiene Products amounted to SEK 1,283 M (858), an increase of 50%. Operating profit for Packaging declined 14% to SEK 738 M (858), and the operating profit of Forest Products amounted to SEK 532 M (760), a decline of 30%.
Financial items amounted to an expense of SEK 253 M (expense: 250). Higher average net debt as a result of company acquisitions was offset by lower interest rates.
Group earnings after financial items amounted to SEK 1,967 M (1,963), virtually unchanged from the year-earlier period. Positive effects of currency movements, which offset lower prices quoted in SEK within Forest Products, increased the Group's profit by 6%. The gross margin was 17.7% (18.7), and the operating margin after goodwill amortization amounted to 10.6% (12.0). The decline was due to lower operating profit by Packaging and Forest Products.
Return on shareholders' equity was 13% (14), and return on capital employed was 13% (15). Comparison with the fourth quarter of 2001
Consolidated earnings per share declined 6% compared with the preceding quarter to SEK 5.89 (6.26). The operating profit of Hygiene Products increased 4%, while earnings for Packaging and Forest Products declined 5% and 31%, respectively. Currency movements had marginal effects on Group earnings.
Within hygiene operations, earnings attributable to Consumer Products declined as a result of raw materials-driven price pressure, while AFH and incontinence products showed increased earnings of 13% as a result of favorable volume and price effects. The operating profit from Packaging operations declined as a result of lower prices, while the decline in earnings by Forest Products was due to lower prices and volumes for publication papers.
The improvement in financial items, which amounted to an expense of SEK 253 M (expense: 340), was attributable to the impact of lower interest rates and lower average net debt as a result of strong cash flow toward year-end 2001.
Stockholm, April 26, 2002SVENSKA CELLULOSA AKTIEBOLAGET SCA (publ)
Jan Astrom President and CEO
This report has not been examined by the company's auditors.
The interim report for the period January 1 - June 30, 2002 will be published on July 30, 2002.
Copies of the Interim Report are available at SCA U.K. Holdings Limited, SCA Packaging House, 543, New Hythe Lane, Aylesford, Kent ME20 7PE, attention, Tony Staples, telephone 0044 1622 883 025.
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www.waymaker.net/bitonline/2002/04/26/20020426BIT00770/wkr0001.doc The Full Report www.waymaker.net/bitonline/2002/04/26/20020426BIT00770/wkr0002.pdf The Full Report