Year-end Report Q4 2011

Year-end Report Q4 2011

1 JANUARY–31 DECEMBER 2011 (compared with same period a year ago) including the
packaging operations held for sale


  ·  Net sales decreased by 1% (increased by 4% excluding exchange rate effects
and divestments) to SEK 105,750m (106,965)

  ·  Operating profit excluding items affecting comparability decreased by 4%
(unchanged excluding exchange rate effects) to SEK 9,224m (9,608)

  ·  Items affecting comparability, write-downs of goodwill, restructuring
costs, etc., amounted to SEK 5,676m (931)

  ·  Earnings per share, including items affecting comparability, were SEK 0.78
(7.90)

  ·  Cash flow from current operations was SEK 6,383m (7,399)

  ·  The Board of Directors proposes an increase in the dividend by 5%, to SEK
4.20 (4.00) per share

  ·  An agreement was reached after year-end to divest SCA’s packaging
operations, excluding the kraftliner operations. Net sales and operating profit
for these operations, excluding items affecting comparability, amounted to SEK
24,413m (24,234) and SEK 1,486m (1,113), respectively, corresponding to earnings
per share of SEK 0.73

 
CEO’S COMMENTS

In November 2011 and January 2012 SCA announced two major transactions. In
November a binding offer was made for Georgia-Pacific’s European tissue
operations, and in January 2012 the divestment of SCA’s packaging operations,
excluding the two kraftliner mills in Sweden, was announced. Together these two
transactions will entail major synergies, lower sensitivity to economic swings
and gradually higher earnings per share.

During the financial year SCA carried out important efficiency improvement
measures, stepped up the pace in its launch of new products and achieved growth
in both mature and emerging markets. Sales increased in all business areas, and
net sales for 2011, excluding exchange rate effects and divestments, rose 4%
compared with a year earlier. Growth in the hygiene operations remained good in
emerging markets, where Personal Care and Tissue grew sales by 13% and 10%,
respectively. To take advantage of growth opportunities in the hygiene
operations and strengthen our positions in emerging markets, during the year we
carried out acquisitions and investments in Brazil, Turkey and Russia, among
other places.

Operating profit excluding items affecting comparability and exchange rate
effects was level with the preceding year. Price increases and cost savings
carried out in combination with increased volumes compensated for SEK 3.2bn in
higher raw material costs and higher energy and distribution costs. Profit for
the year excluding items affecting comparability and exchange rate effects
decreased by 2% compared with the preceding year.

Net sales for the fourth quarter of 2011 excluding exchange rate effects and
divestments increased by 1%, and operating profit excluding items affecting
comparability and exchange rate effects increased by 1% compared with the fourth
quarter a year ago.

Compared with the third quarter, operating profit for the fourth quarter
excluding items affecting comparability rose 4%, while net sales were largely
unchanged. The operating margin for the hygiene operations continued to grow.

Continued good demand is expected for SCA’s hygiene operations.
 

Web cast, flash:
_http://www.sca.com/WebcastQ42011flash (http://www.sca.com/WebcastQ42011flash%20
)
Web cast, wm: 
http://www.sca.com/WebcastQ42011wm (http://www.sca.com/WebcastQ42011wm%20)
Other Q4 material; http://www.sca.com/Q42011en 

 

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. Submitted for publication on 26 January 2012, at 12.00 CET.