Year-end Report Q4 2010

Year-end Report Q4 2010

1 JANUARY-31 DECEMBER 2010 (compared with corresponding period a year
ago)


  · Net sales decreased by 2% (increased by 5% excluding exchange rate
effects and divestments) to SEK 109,142m (110,857)
  · Net profit before tax, excluding restructuring costs, rose 6% (10%
excluding exchange rate effects) to SEK 8,492m (8,004)                
  · Restructuring costs amounted to SEK 931m (1,458)
  · Profit for the period, excluding restructuring costs, rose 6% to SEK
6,281m (5,906)
  · Earnings per share, including restructuring costs, rose 17% to SEK
7.90 (6.78)
  · Cash flow from current operations was SEK 7,399m (11,490)
  · The Board of Directors proposes an increase in the dividend, by 8%,
to SEK 4.00 (3.70) per share

(Table included in attached pdf)

CEO'S COMMENTS

During the year, SCA increased its volumes in all business areas and
grew its market shares for the global brands Tena, for incontinence
care, and Tork, in the away-from-home (AFH) tissue market. Together with
higher prices for both Tissue and Packaging and cost-cutting measures,
this compensated for negative exchange rate effects and SEK 5.2bn in
higher raw material costs. The Packaging operations showed a sharp
improvement in profitability. Net profit for the period rose 6% (10%
excluding exchange rate effects), and earnings per share, including
restructuring costs, rose 17%.

Cash flow from current operations for 2010 was SEK 7,399m (11,490). The
decrease is mainly attributable to a higher level of tied-up working
capital as a result of higher raw material prices. Net debt decreased by
SEK 6bn during the year.

Net sales for the fourth quarter of 2010, excluding effects of exchange
rate movements and divestments, rose 8% compared with the same quarter a
year ago, as a result of higher prices and volumes.

Operating profit for the fourth quarter of 2010, excluding restructuring
costs and exchange rate effects, rose 5% compared with the same period a
year ago. Price increases and cost-cutting measures, combined with
higher volumes, compensated for SEK 1.7bn in higher raw material costs.

During the fourth quarter of 2010, operating profit for Personal Care
and Tissue decreased compared with the same quarter a year ago, mainly
due to higher raw material costs. The improved operating profit for
Packaging is mainly attributable to higher prices and volumes, and
savings from the restructuring programme. Operating profit for Forest
Products decreased as a result of a drop in prices for publication
papers. Compared with the third quarter, operating profit improved for
Personal Care, Tissue and Packaging.

Continued favourable demand is expected in all of SCA's business areas.

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.